Google, Google, Verizon & Weakness In The NASDAQ 100

Lost in the news this week was that Google is being added to the Dow Jones Industrial Average and Verizon is being removed. When things like this happen I usually go opposite the masses, meaning looking to sell Google and buy Verizon. It is not that cut dried, however. History says that the company being added rallies for roughly a month and the company being removed sells off for about a month. Then they both reverse.

It is obvious from the charts above that Verizon has gone nowhere for 10 years, excluding the dividend while Google has soared. In a perfect world I would like to see Google rally to new highs and Verizon to pull back over the coming month or so. And let’s not forget that Google is selling shares to raise $85 billion for AI infrastructure.

Elsewhere, Micron’s blowout earnings were a selling opportunity at the open with a full 3% reversal in the first 30 minutes. It’s no wonder volatility rose. The concerns I wrote about the other day in the NASDAQ 100 remain. The low from early June is in play until the index gets back above 30,500. The S&P 500 looks similar. The Dow Industrials, S&P 400 and Russell 2000 do not as they are stronger.

Finally, today is the Russell Indices annual rebalance. We can expect some huge volume and possibly some unusual behavior in some of the stocks.

The weekend is here. I survived Renee being on vacation for 10 days. My welcome back gift to her is that after being prodded, nudged and annoyed, I finally started cleaning my office. The last time I did this, we threw away six black Hefty bags. I am going for eight this time around. Three are already in the books. It’s been great to have the kids all around for a few days. I miss that. I was hoping for a full family meal, but that will have to wait.

On Wednesday we bought SPCX, more MQQQ, more QLD, more BUG and more RAIL. We sold EMB, PCY and TQQQ. On Thursday we bought SSO, more MQQQ and more QLD.