Some Divergences Are Emerging
Not much changed in the market last week but there are some signs of small divergences.
Key Observation (Part Deux)
Breadth mixed (but sector divergences are wild), trading inconsistent and swinging wildly intraday:
* Despite the evisceration of tech yesterday, there are few tech stocks higher on the day — Google ($GOOGL) (DJIA inclusion), Amazon ($AMZN), Apple ($AAPL)
League leading hitter, Nvidia ($NVDA), has cracked to the downside some fractal support
* Hard reversal lower in financial stocks
* Carnage in the oil patch ($OIH -$13) with oil -$2.65
* Consumer staples are the world’s fair ($KO, $PEP, $PG and $KMB)
* Private equity shares are breaking down (after more redemptions and gates)
* Bitcoin breaks $60k to the downside (remember this was one of the possible catalysts I mentioned to a disrupted market filled with leveraged players)
* Speculative faves $PLTR (don’t investors ever learn?) and $HOOD are breaking down
Position: Long KO (S), PEP (S), PG (S), KMB (S)