TMTB EOD: $AMZN ST narrative change, Large caps lead the way down, does $QQQs weakness continue to next wk? we think so, $ADBE sell the news, Semis underperform
Pretty bad day for tech as the QQQs finished down 1.8%, SOX dn 3%+, ARKK down 1.5% with large cap finally underperforming small cap. We have been talking about the large dispersion in tech with large-cap leading the way despite several laggards sitting near 52wk lows – and asking if initial cracks in $AAPL and $NVDA make the QQQs “catch-down.” Well, today was the day where that finally cracked imo and heading into what is the seasonally weakest week of the year, we think this weakness could last a little longer than 1 day. The main reason is this: the market rally since January has been led by large-caps and the “magnificent 7.” Over the past few weeks we have seen several generals acting poorly – and its not only purely price, but some fundamental overhangs and cracks have emerged in the narratives of these stocks. Last couple weeks it was $NVDA and $AAPL, before that $MSFT, this week was $NFLX with their CFO comments, $ORCL’s miss, and today $AMZN’s lack of acceleration in AWS desp…
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