Not Such a Special Little Snowflake

The jokes practically write themselves that we have a blockbuster tech IPO today called, "Snowflake," but such is life in 2020 in America.

Trading under ticker SNOW and likely to open much, much higher than originally thought, SNOW is a sign of the times, indeed. With stakeholders like Warren Buffett and Salesforce.com, among many other heavyweights, this sure seems like a can't-miss name, in a long line of can't-miss tech names since the March lows. 

Ah, but we have been here before. 

As posted by @zerohedge on Twitter this morning, you can see a Goldman Sachs research chart, below, which puts the Nasdaq strength into context. But-for the top five, all tech-related names screaming higher since March, where we would we be now? That may not be a fair question, since they are clearly leaders and dominant players in this cycle. 

However, the dot-com bubble itself did not become quite this concentrated at the top, literally and figuratively. The mania was more broad-based, if you will, with mid-caps down through garbage tech stocks (which would soon perish after the bubble burst) enjoying the run.

As you may know, this time around the real fun has been relegated to those at the very top. Bulls will argue for inevitable rotation either within tech, possibly to a name like SNOW now, or down to banks, energy, materials, cyclicals, etc. to keep the party going, while bears will look for a surprise sell-the-FOMC news over the next few days if not weeks. 

Either way, the chart below should put things into historical context for you and indicate just how unique things truly are right now. 

Elsewhere, among the online gambling plays I recognize that DKNG PENN are the hot leaders, but do not forget about LCA and it various niche segments. It continues to flag well and has far less eyes on it.