Stocks: The Good, The Bad and The Ugly

Cruisin' and gamblin'

Good morning,

Yesterday’s CPI report came and went without any fireworks. Stocks were mixed, but the Nasdaq and growth stocks led as Treasury yields fell. That’s where today’s report starts, as Alphabet finally broke out, while Amazon is knocking on the door.

We’ll also look at:

• Cruise lines and casinos hitting new highs

• Buyable breakouts in the materials sector

• Some small-cap stocks hitting 52-week highs

• Large caps to avoid

• and more!

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Giddy-up growth stocks

Sweet looking breakout for GOOGL here

Alphabet finally broke out yesterday, hitting and closing at its highest level since August. The relative chart has also broken out, as it joins the strength in META, AAPL, and NVDA. Get long, and you can use $108 as a stop, or $100 as a looser stop.

All that is left for Amazon is the February island

Amazon closed at its highest level since early February yesterday, and the top of that island is exactly $114. That’s the only thing separating AMZN from a decisive breakout, and if we’re following trends here, I believe the trend is that mega-cap growth consolidations are resolving higher, not lower.

HPQ looks like it wants higher

This one popped up during Tuesday’s Berkshire Hathaway Deep Dive, and while certainly isn’t the cash generating behemoth that true FAANG names are, it’s a big tech stock with a similar pattern. So, I’m betting that $31.50 gets cleared sooner rather than later.

NVDA trying to eclipse March 2022 highs

NVDA is flirting with its March 2022 high, which is right before the wheels started to come off. Momentum is negatively diverging, so that bears watching, but overall the stock just can’t seem to go down. It is closing in on fresh relative highs, which is remarkable considering it underperformed the S&P 500 by more than 50% in less than a year.