While the broader indices are making new highs, it is very curious to see several bubble names break down out of their price box on no news (the charts are a bit behind closing prices).
BYND was within a very narrow range of $145/$135 for over a month. Today, it is -7.53% and $126, a significant move on no news. Breach of the lower parallel is important if it holds.
ZM is -6%, continuing its downtrend. Breach of the $350 price box would be important.
SHOP is -6% despite AMZN roaring up 3.5% out of its wedge.
CVNA is -8%, breaking down out of its two month long uptrend and smashing through the lower parallel very decisively, again on no news.
DASH is -6%, making new lows for the year, after its ridiculous IPO.
NIO is -3.8% and TSLA is 0.25%. Breach of the $38 price box would be significant.
Bottom line: It is curious that while the indices and most stocks are up, many of the most euphoric bubble names are correcting hard today despite the absence of specific news, a tell and possible hint of future direction.
Meanwhile, a name I closed out at $70 soon after its IPO, is up 18.7% today and at over $16 (NKLA). With some actual product soon to be running in the hands of customers maybe it will stop falling. This massive move from $94 to $13.5 points to how useless trading based on ideas or a thesis actually is as you could have suffered an $80 drop while still remaining positive on the future of hydrogen transportation.
Timing is tricky, of course, but I cannot remember the last time we had such a divergence in performance between the general market and the bubble names.
Generic disclaimer for this entry and this entire blog: Not advice, as I have no relevant industry qualifications. I may be trading in any name mentioned.
Felix qui nihil debet 