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US stocks near 3-month high; Amazon broadens horizons further

Summary:

  • US500 at highest level since March
  • Tech stocks leading the rally with US100 hitting another record peak
  • Amazon near all-time high; Agrees deal to broadcast PL football 

It’s shaping up to be a nice week for US stock market bulls with the US500.cash trading at its highest level since March after making a nice break above 2742 on Monday. The market is now not too far from the highest level seen since the large drop in February and if price can gain traction above the 2800 level then another tilt at the all-time high of 2881 could lie in wait. 

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 The US500.cash has enjoyed 4 consecutive daily gains and in breaking above the prior resistance around 2742 on Monday has opened up the possibility of a retest of the 2800 level. Source: xStation

While the gains seen in the broader US500 will be pleasing to investors the largest increases can be found in tech stocks with the US100 hitting a second consecutive intra day all-time high, in reaching 7230 this morning. We can observe some similarities between the US100.cash chart and that of the US500.cash. The US100.cash made it latest break above resistance (7010) last Friday and seems to be leading the way. Also note how the price action for the US100.cash is stronger with the market moving above the highs from the start of the year during the recovery in March and subsequently taking out those highs in recent days. 

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 The US100.cash has been leading the way higher and made a new all-time high today - the 2nd consecutive day in uncharted territory. Source: xStation

One of the reasons for the outperformance of the US100 over the US500 has been the strong rise in FAANG stocks, with these tech giants holding a greater weighting in the former compared to the latter. We touched an Apple earlier this week as it hit a record high and now we’ll look more closely at Amazon. The rise of Amazon over the last 2 decades has been nothing short of incredible, beginning as a small online book store and growing into the retail behemoth we see today. There are many charts that highlight this.

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 According to the latest research, almost 2/3 of US household shopped at Amazon in the past 4 weeks - very nearly as many as Walmart. Source: xStation

One of the main reasons that Amazon has seen this incredible increase in popularity has been the broadening of its product offering, with today’s announcement that it has purchased a package to show live matches of English Premier League football from next year through its Amazon Prime subscription a good example. Amazon outbid Sky to win exclusive UK rights for men’s tennis would tour matches in a deal reported at $40m while in the US it has reached a $130m deal with the NFL to screen American football matches in the US on Thursday nights for the next two seasons. 

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 Amazon hit a new all-time high yesterday above 1714, but the stock did end lower - ending a run of 9 consecutive daily gains. Source: xStation

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