Chart of the Day – The Four Horsemen Stall, $TSLA, $NFLX, $LNKD, $FB

TSLA, NFLX, LNKD, and FB have been four of the best Nasdaq performers in 2013.  Ever since FB joined the ride after its July earnings, the four stocks have been the epitomes of momentum leaders, breaking out, consolidating, breaking out again, consolidating again, and so on and so forth.

In the past month though, these leaders have stalled, even as the broader indices have made a new all-time high.  TSLA is breaking its 50 day ma convincingly for the first time since March:

TSLA daily, 50 day ma in pink, Courtesy of Bloomberg

TSLA daily, 50 day ma in pink, Courtesy of Bloomberg

Meanwhile, NFLX’s big reversal yesterday was quite a candle, as Dan detailed in this morning’s post.  NFLX is holding its uptrend better than TSLA, but the huge volume on yesterday’s reversal is a reason for caution:

NFLX daily, 50 day ma in pink, Courtesy of Bloomberg

NFLX daily, 50 day ma in pink, Courtesy of Bloomberg

LNKD has been much weaker than the other 3 stocks.  It has not been able to get above its mid-September high, moved down to its 100 day moving average on the selloff in early October, and is back below its 50 day ma again today:

LNKD daily, 50 day ma in pink, 100 day ma in green, Courtesy of Bloomberg

LNKD daily, 50 day ma in pink, 100 day ma in green, Courtesy of Bloomberg

FB actually looks the strongest of the 4 stocks.  It made a new high last week after breaking above the $50-$51 area, and is still holding above there today on the weakness.  It is still well above its 50 day ma:

 

FB daily, 50 day ma in pink, Courtesy of Bloomberg

FB daily, 50 day ma in pink, Courtesy of Bloomberg

 

Are there wider market implications of this leadership stumble?  The broader market has made it a habit over the last 18 months of finding new leadership as each former sector leader loses steam (as staples lose steam, financials pick up, financials lose steam, industrials pick up etc).   Given that past resilience, a few high fliers pulling back is not a huge alarm bell.  Simply put though, the strongest horses pulling the chariot are slowing down.