When money managers are fearful that they are missing out on market upside they tend to pour money into the big-cap FAANG names. These stocks offer great liquidity as well as a higher beta, which means they tend to move at a faster pace then the indices.
Currently Alphabet (GOOGL) is breaking to its highest point since Oct. 3, 2018. The stock is up over 20% from the lows it hit this past December. It may look extended here, but it is developing a classic "cup-and-handle" pattern, although so far the "handle" is missing.
The handle is an important element of this pattern as it allows the big gains off the bottom of the cup to be digested. Those that are fearful that GOOGL may be extended now will be washed out as the handle starts to form.
One of the problems with this pattern is that it doesn't tell if a pullback after a cup is a bullish hammer or the start of a reversal. Currently buyers are so anxious to not miss out that they are not allowing a handle to form. It makes for a less attractive chart, but it is hard to argue with the momentum.
If you are confident about the overall market, Google is likely to perform well. The chart makes it clear that market players are looking to throw money at it in order to try to keep pace with the indices.
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