Chart of the Day - Monday, April 13th, 2020

Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). It's a daily candlestick chart of Netflix ($NFLX). There has been a lot of chatter about $NFLX and $AMZN today, as both of these market darlings are testing new highs. Steve explains that the outperformance we're seeing from these widely held stocks is nothing new, emphasizing that they've been leading the broader market for years. Up until today, the recent rebound has been driven by the beaten-down areas of the market, typical of a bear market rally. However, seeing these long-term leaders start to reassert their leadership is healthy for the broader market. He adds that most of these market leaders did not get oversold throughout the historic 35% decline in the broader markets. Regardless of the broader market implications, this is a good reminder that in order to outperform the market, you need to own the stocks that are outperforming the market.