Nasdaq 100

Weekly Update

Different Types of Market Corrections

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Published July 23, 2021

 

We thought a recent article by David Keller on the various types of market corrections might be of interest. Here it is with some recast charts we provide to assist:

“As the S&P 500 and Nasdaq 100 indexes have pounded away at new all-time highs basically every month in 2021, investors are left to wonder when a correction may actually be coming. We were taught that markets do not just go straight up, but instead they move in a series of impulse moves and corrective reactions as the overall trend continues. But 2021 has very much been the exception to that rule of market trends! (more…)

Weekly Update

The Stock Market Shudders as the Fed Starts to Shift Gears

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Published June 18, 2021

This year’s stock market has been all about rotation with money moving into value stocks and out of growth stocks. The narrative has been that rising inflation would push up interest rates. The hike in rates in turn raises the denominator of the classic stock price valuation (e.g. earnings/interest rates) which devalues high-flying growth stocks. The beneficiaries of this narrative have been cyclical sectors like materials, industrials, and energy. This week that narrative took a beating. (more…)

Weekly Update

Markets Churn as Investors Look For What Comes Next

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Published May 21, 2021

Taking a step back this week to consider the broad market and the substantial changes that have been going on under the surface.  At surface level, the broad market S&P 500 remains close to its all-time highs while our favored Nasdaq 100 index, heavy with tech and consumer stocks, has been choppy over the past four months.
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Weekly Update

April Often Shines on the Q

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Published April 2, 2021

This week’s market action reminds us that April is often a favorable month for investors, particularly for tech/consumer stocks. This week, those stocks look to have begun a rebound from their March rest period. Over the past 15 years, the Nasdaq 100 (QQQ) has posted a gain 80% of the time in April, making it the second most reliably strong month for this index. (more…)

Uncategorized, Weekly Update

The Nasdaq 100 Seems Unstoppable

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Published July 3, 2020

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At TimingCube our focus market index is the Nasdaq 100, traded under the symbol QQQ. The Nasdaq 100 contains the 100 largest non-financial companies listed on the Nasdaq stock exchange, a purely electronic exchange that was founded in 1971. This focus on non-financial companies has served the index well over the past 30 years, a period dominated by growth in technology and electronic commerce. (more…)

Uncategorized, Weekly Update

Sector Rotation Adds New Fuel to Recovery Rally

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Published May 29, 2020

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Bullish markets are characterized by sector rotation. There are always sectors that consistently lead the way. But investors can only push a single stock or sector’s valuation so high. To keep the bullish fires burning bright, they eventually have to find other sectors attractive enough to invest in. This week we saw a couple of powerful days of sector rotation. The stocks that had been beaten down the most suddenly became the stars of the show. The stocks that had been favored got sold off, at least for a few hours. (more…)

Uncategorized, Weekly Update

Market Reaches Technical Inflection Point

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Published May 22, 2020

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The stock market has rallied hard off the March 23rd bottom, surprising almost everyone in the strength and lift of the move. This rally has brought the Nasdaq 100 (QQQ) back to positive on the year, a stunning development given the dire economic situation. That positive year-to-date print for the Nasdaq reflects the seeming fact that Covid-19 has served to accelerate trends which benefit these top companies of the digital economy – e.g. Amazon, Facebook, Google. That the Russell 2000 small-cap index remains down almost -20% year-to-date, while the equally-weighted version of the S&P 500 is down -16%, is perhaps a better stock market gauge of the overall economy’s troubles. (more…)

Uncategorized, Weekly Update

Smallcap Stocks Fail to Find Buyers

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Published May 31, 2019

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At the beginning of this month of May we concluded our weekly blog with the following:

“Were smaller, riskier stocks to find strength, it would be a real boost to the market’s rally effort as there is clearly some “wall of worry” built into this market.”

By the end of the month, the market’s answer was clear: there would be no boost from small and midcap stocks. (more…)