Participation Strong – Small & Mids Will Catch Up
Quick blog as I am traveling at a conference. The S&P 500 and NASDAQ 100 followed their pre-market behavior and scored new highs again.The Russell 2000, below, and S&P 400 have not, at least not yet. I expect both indices to score new highs in the coming days and weeks.
Yes, I do know that the indices are being led by a handful of stocks. Led doesn’t mean only. The big, sexy stocks are leading. In the upper chart you will see the S&P 500. Below that is the NYSE A/D line which measures participation. That line is just shy of all-time highs which debunks the theory that only a few stocks are rallying.
Finally, anyone who follows the stock market on a daily basis probably knows that semiconductors are partying like it’s 1999 again. 18 straight up days. While that’s super fun for those who own them, this is not healthy behavior.
And here is 1999 below for those curious. The percentage moves are not comparable, but I think you get the picture.
On Friday we bought MQQQ, RYRSX, QLD, GDX, XLB, QQEW, more XCEM and more JNK. We sold RMQHX, RYTNX, RYVNX and some INTC.
