Friday was another good day for the market except for one important market leader. So, does that make the glass half full or empty? It was Facebook, of all things that gapped down. There are reports circulating around social and new media of greater censorship by Facebook. Additionally, there is a report on WSWS.org that Mark Zuckerberg announced on Friday he is planning major changes aimed at deprioritizing news and political content on individual news feeds in favor of ‘personal moments.’ This change is the initiation of a major new effort to censor online information. We already know Twitter is doing the same thing as Project Veritas just released shocking evidence of how Twitter employees censor content they don’t like.
We may have finally reached the point where political discourse is impacting the stock market. As one of the FAANG leaders, the market can ill afford to lose Facebook’s leadership. The rest of these names did just fine on Friday. Like the flu, this sort of thing could be contagious. While the other leaders still look good, will market participants get nervous and jump out of the other names?
It’s fascinating times we live in where money is not welcome from people who believe in a certain political persuasion. We have a runaway freight train market and one must wonder how long it can last and when it will finally crack under the weight of the divided country we live in.
Elsewhere the precious metals keep rolling with gold above the 78% retracement of the big 67-day move down. As you know I’ve liked this move up from the beginning. Oil is on the outer stretches of its latest 144-day window since the low in June. So, one of the scenarios I was concerned about last week when it was sitting near 261 days that we’d lose the oil stocks has not come to fruition. We are still looking at the back end of a weekly window on the Transports and that should play out one way or the other by the middle of the week.
The holiday ended and the freight train kept rolling on Tuesday morning. As you can see FB is only holding the connect the dots line in the near term which may represent a potential wedge. There is plenty of room for it to get to the bigger connect the dots line which if violated would confirm a long-term top. Right now, we can say its getting in hot water. As of the time I snapped the picture, it gapped up but was put in a bear belt which means it was not sustaining very well.