07Nov10:33 amEST

The Race Takes a Bad Turn for Bears

With the midterm elections now out of the way, combined with a particularly strong earnings report out of Twilio, the market seems more focused on rotating back into tech growth stocks than anything else this morning. 

As I write this, TWLO has already printed fresh all-time highs and it up nearly 28%, quite impressive indeed considering the stock was still working through a consolidation after its recent October dip headed into the report. If nothing else, we can glean from this action that the market almost assuredly  expects TWLO to be a new leader when the settles and if the bull marches onward and upward into next year. 

Actually, other names may surprise or anger you, depending on your bias, such as Twitter, FireEye, and even Tesla (which has been acting particularly well as autumn has unfolded, all of a sudden), which means we simply must keep an open mind to the idea that the "FANG" names may be on the shelf for a while as new leaders emerge in tech. 

Any way you slice it, the QQQ is acting better this morning with a gap up and out of the highlighted falling channel presented on its daly chart, below. 

And with the QQQ back over its 200-day moving average, as long as that holds I am going to roll with the punches and put any bearish equities/long volatility thesis on the back-burner until further notice.

 

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