Apple and Facebook continue to scream higher as former laggards try to lead, while the likes of Google and Netflix cool off. DDD, the 3D printing play, is getting hit post-earnings and looks vulnerable to a base breakdown on the daily below $45.50. And HLF continues to put the squeeze on Bill Ackman with a gap higher.
I am still stalking some well set up long ideas like EXPR ZIXI, while stalking opportunistic shorts like DPZ.
An interesting chart here is courtesy of Ryan Detrick on Stocktwits, which shows the number of “buying climaxes” in the market recent reached its highest levels since the May peak. We see a buying climax when a new 52-week high is made, and the stock closes the week below the previous week’s close. Seeing many buying climaxes clustered together can often indicate buyer exhaustion is imminent.
Too much of anything is not very good, and that includes buying climaxes.
