3/19 Best Idea For The Week Ahead + 10 Charts Of Interest.

We’re getting into 2021 territory again where nothing but tech stocks are working again. The overall market below is looking quite weak. We closed below all the key moving averages again and they all remain sloping down. The banking and oil sectors are really weighing on the market. Oil closed at its lowest point in a very long time, the banks are dealing with a myriad of issues and the regionals are trading like the profitless tech names did last summer with a number losing 20-30% daily.

But fear not, there is hope, there is always a bull market somewhere and for the moment it’s in megacap tech. A quick glance at the QQQ below shows a clear breakout followed by a little consolidation on Friday. As I always say, the charts simply show the flow of money and it’s hard for me to look at the chart below and say anything other than people are buying tech stocks, for now, could that change on a dime with something from the fed? Sure, but the levels are defined and back below that downtrend you move on, it’s less difficult than people make it out to be.

Best Idea

The strength in all our megacaps has been noticeable for some time. Microsoft,Google, Meta,Amazon, and Apple have been carrying us for the last couple weeks. Those 5 names make up the bulk of the S&P so it’s pretty telling how much Banks,Oil,Materials, & the rest have been lagging to see the overall market be so weak but one has been standing out from the pack and the chart + options flow show a bigger move is likely lying ahead.