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, Carter Worth spoke about top three stocks in the S&P 500 index.
Netflix, Inc.NFLX gained 143 percent year to date,
Amazon.com, Inc.AMZN jumped 124 percent, while
Activision Blizzard, Inc.ATVI added 97 percent.
Worth believes that investors should take profits in these stocks, but he also tried to figure out is it a good idea to take a short position. He presented couple of charts that show a combined performance of the three stocks and he concluded that they are trading close to its trendline. Worth explained that usual scenarios for a such performance is a sharp move higher, as many people think, or a sideways activity followed by a sharp move down.
As long as
Amazon.com, Inc.,
Netflix, Inc. and
Activision Blizzard, Inc. can maintain the uptrend, the presumption is that they can keep doing that.
Worth believes that there is a reason to be concerned, because the most of the gains of the top three performers were made in 2015. Up to 2015, they traded flat and now they are holding the market. This is concerning and it means that the market health has to be called into question, thinks Worth.
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