The recent surge in Bitcoin prices is echoing patterns seen during global blow-off tops, and the correlation with risk assets, including junk bonds, raises caution flags.
Examining the tech landscape, Microsoft stands as the sole confirmation of the new Tech all-time high, with the equal-weighted Nasdaq index up only ~48% since January 2020. In stark contrast, the Magnificent 7 has witnessed a staggering 259% surge during the same period, marking a substantial 5.4 times increase compared to the equal-weighted Nasdaq.
Notably, the influence of the five largest tech stocks in the Nasdaq 100 accounts for approximately 70% of the index’s gain this year. The S&P 500’s performance is similarly intertwined with the Magnificent 7, reflecting the dominant role of tech stocks in shaping the broader market.
This concentration of power within the tech sector surpasses even the levels observed during the Dot-com bubble. Nvidia insiders are capitalizing on the stock’s remarkable rally, marking the fastest share sell-off in at least six years. Concurrently, Mark Zuckerberg’s decision to sell Meta shares for the first time in two years adds to the growing narrative of potential market shifts.
As the tech giants become synonymous with the stock market itself, signs emerge that the $ndx may have formed an island reversal top, sparking concerns of a pivotal moment reminiscent of historical bubble bursts.
Sources:
Bitcoin is confirming the global blow-off top on the right shoulder. Note the correlation with junk bonds (and every other risk asset).
The media never fail to believe that the latest pump and dump is a new bull market. They might as well all be publishing on Reddit. pic.twitter.com/MYJPG3Gd9P
— Mac10 (@SuburbanDrone) December 4, 2023
Just something to think about… pic.twitter.com/eCk79qFXta
— Levels Finance (@FinanceLevels) December 4, 2023
Only Microsoft confirmed the new Tech all time high.
And does anyone really think this is February? pic.twitter.com/Eei9eUHz2X
— Mac10 (@SuburbanDrone) December 4, 2023
I Googled "Crash".
All I got was this: pic.twitter.com/6TmQ8Pg9AP
— Mac10 (@SuburbanDrone) December 4, 2023
it is quite possible the $ndx has formed an island reversal top pic.twitter.com/3qPIM12Odw
— Michael J. Kramer (@MichaelMOTTCM) December 4, 2023
Well there it is the Greatest Topping signal that has never failed in History
Thanks @barronsonline #AI bubble
— Golden Coast (Cassandra) (@GregCrennan) December 4, 2023
BREAKING: Spotify, $SPOT, will be laying off an additional 17% of its entire workforce in an effort to cut costs.
The layoff will impact 1,500 employees and marks their THIRD layoff of 2023.
In total, Spotify has laid off nearly 25% of their employees in 2023.
The company has… pic.twitter.com/hRw8HTvifz
— The Kobeissi Letter (@KobeissiLetter) December 4, 2023
Closing the Door on a Disappointing Year for IPOst.co/cTjMn33hNS @WallStHorizon @dailychartbook @topdowncharts @awealthofcs @michaelbatnick pic.twitter.com/FZxRnA7RJH
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) December 4, 2023
Meta Platforms Insider Trading Alert 🚨
Chair & CEO Mark Zuckerberg sold another 84,027 $META shares for a total value of $28.2 million. In November, Zuckerberg sold a total of 560,180 shares for a total value of $183.7 million pic.twitter.com/vzil7zayft
— Barchart (@Barchart) December 4, 2023
Just give me any sign it's time to buy. pic.twitter.com/W8pk2wy54l
— Mac10 (@SuburbanDrone) December 4, 2023
Nvidia Insiders Unload Shares After 220% AI Rally
- Insiders sold or filed to sell about 370,000 shares last month
- Moves come after the stock more than tripled in value in 2023