You get a weak jobs report -- and this one is being interpreted as such -- you get the money going back into the companies that simply do not need Washington's help for growth.
Now we know that yesterday Netflix (NFLX) hit an all-time high. I have to marvel that out of nowhere Facebook (FB) has seen endless buyers even as we keep hearing rumors of that Zuckerberg's mind is somewhere else. We did get a note the other day that Alphabet's (GOOGL) other bets might be producing some revenues. Amazon (AMZN) ? I don't know a soul who thinks this stock can be held down by the $800 barrier even if Amazon is in a spend-not harvest cycle.
What would it take for me to feel better about this move? How about a continued breakout of Salesforce.com (CRM) , perhaps back to its $77 level after reporting that terrific quarter?
How about some upward movement in Microsoft (MSFT) , which seems pinned to the $62 level?
Maybe a breakout of Adobe (ADBE) , which had one of the best quarters in the group and yet was thrown back to the low $100s before it recently caught a bid?
Suffice it to say we can't just have FANG do the work. That signals a reversion to the bad old days where we aren't strong enough to take rate hikes, and the expansion is slowing and we know that these companies will do better than those that need GDP growth to advance.
Two others to put on your screen: ServiceNow (NOW) and Splunk (SPLK) . They both had fantastic numbers. They are both companies that are integral to saving money and servicing the client, respectively. If you see these key names power higher then we could be returning to a market where, while we leave behind some of the industrials, we pick up companies that have been real drags on the market because they have so many growth investors trapped in them.
We don't want FANG. We want FANG plus the GANG ... the gang of other companies associated with the real growth areas: virtual reality, machine-learning, artificial intelligence, the data center, autonomous cars and gaming, all the stuff that Nvidia (NVDA) has explained to us are the hottest markets.
Oh, and, after consolidation and a possible drop below $100 you get a chance to buy Nvidia. It's getting a very much needed shake-out.
You have to welcome it.
A final coup de grace would be a breakout of Apple (AAPL) . I feel that Apple's stock has been locked in a WWI trench warfare moment. It's not a war of movement. It's static. But a take-out of the $118 and change?
And it's over the top.