While some market observes like to worry about what words the federal reserve may or may not take out of statements, we prefer to focus on what the actual market is doing, and less on speech writing tactics. More specifically, I want to point out how strong the internet space has been, especially with its lack of interest-rate sensitive characteristics.

I have really liked the Social Media sector over the past month and this past week the Global X Social Media Index ETF has broken out beautifully:

One of the top components within this index is the Chinese internet giant Tencent Holdings. It may not be a household name, but this is a $160 Billion company that rarely makes headlines, but it does make all-time highs. In fact, this is pretty much all that this stock does.

More recently, prices have been consolidating in a nice healthy sideways range since last August. This overhead supply has been very clean and Thursday morning prices broke out it what appears to be a breakaway gap higher:

Risk management wise, we only want to be in this name if we are above all of this former overhead supply from the past few quarters. With a price target near $20.25, this skews the risk vs reward very much in our favor, which is really the only thing we care about. This upside objective is achieved based on the 161.8% Fibonacci extension of the August-December decline. I think we get up there quickly as these breakaway gaps tend to lead to explosive moves, and this is precisely what we got this morning.

Also See:

Internet Stocks Lead the Market Higher (Feb 12, 2015)

Are Social Media Stocks About To Break Out? (Feb 25, 2015)

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