29
Oct, 2010
29
Oct, 2010
Tech Strength; Concentrated; ETF Tail Wagging Dog Responsible?
What do you all think? I invite you to weigh in. I look at the top holders of these heavyweights and see lots of ETF’s. I guess I wonder if so much of the buying that has buoyed these wonderfully-performing stocks is more related to ETF buying regardless of price or valuation, versus a money manager who decided they like AAPL at $250, but maybe less so at $300.
Tech last two months (8/30-10/30)
Cash on Balance Sheets. Year- end performance chasing. Overbought though. RSI is 75ish. 80ish is toppish. Concentrated too. Big Move . Tail wagging dog. Look at the top holders of each of these names. See any ETF’s?
Top 8 in the NDX by weighting (AAPL, GOOG, QCOM, MSFT, ORCL, AMZN, CSCO, INTC) = 44% of the performance is in 8 stocks.
AAPL 240 ==> 303 26%
GOOG 448 ==> 615 37%
QCOM 37.80 ==> 45.50 20%
MSFT 23.35 ==>26.60 14%
ORCL 21.66 ==> 29.50 36%
AMZN 123 ==> 167 36%
CSCO 19.80 ==> 23 16%
INTC 17.60 ==>20.50 16%
WIGHTED AVG 25.6%
NDX 1755 ==> 2131 21%