When a stock adds $200 Billion in one session - things move
quickly. For those willing to deploy LT funds, I would prefer
to buy into the initial higher low ( remember I pointed out 5 waves
down last fall). MAGMA (better than FAANG) has been
outperforming for a few months not just lately. For me
personally, I don't see the FED starting QE (you make your own
decision) - define your markets and trade accordingly. I
have gone overboard to present what has been moving the market for
many weeks and especially of late (it's been an extremely narrow
advance as I have shown with the stats). Most simply still
cannot comprehend how the indices work. This is a market of a few
halves and many have nots and for anything sustainable this will
need to broaden out - but traders have been quite reluctant to
position into other areas due to the declining macro environment
(quad 4). Outside of those 7 names impact - you would have
been better off in money market funds YTD if simply tracking the
SPX. Take time to review all sectors and indices that I
posted below once again. Further to my point, fixed income
(bonds) are lower and commodities torched so far this year.
I suggest you take to review the LEI prior to making any such moves
as well and then make an informed decision.
Yes, in 2022 those so called FAANG stocks greatly underperformed
and the new driver this year for such names has been AI - starting
with MSFT awhile ago.
Key levels of support on NQ 13,860
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When a stock adds $200
SPX vs SPX Equal Weight Views along with the Magnificent Seven
Posted by steve on 28th of May 2023 at 10:04 pm
When a stock adds $200 Billion in one session - things move quickly. For those willing to deploy LT funds, I would prefer to buy into the initial higher low ( remember I pointed out 5 waves down last fall). MAGMA (better than FAANG) has been outperforming for a few months not just lately. For me personally, I don't see the FED starting QE (you make your own decision) - define your markets and trade accordingly. I have gone overboard to present what has been moving the market for many weeks and especially of late (it's been an extremely narrow advance as I have shown with the stats). Most simply still cannot comprehend how the indices work. This is a market of a few halves and many have nots and for anything sustainable this will need to broaden out - but traders have been quite reluctant to position into other areas due to the declining macro environment (quad 4). Outside of those 7 names impact - you would have been better off in money market funds YTD if simply tracking the SPX. Take time to review all sectors and indices that I posted below once again. Further to my point, fixed income (bonds) are lower and commodities torched so far this year. I suggest you take to review the LEI prior to making any such moves as well and then make an informed decision.
Yes, in 2022 those so called FAANG stocks greatly underperformed and the new driver this year for such names has been AI - starting with MSFT awhile ago.
Key levels of support on NQ 13,860