Today continued the Mag 7 chase as NVDA cleared the $5T Market Cap and has now become a 10% weighting in the SP 500 index. For reference, the great CSCO at the Dot Com Peak was @ $555 Billion Market Cap and 4% weighting of the SP 500. In 2023, AAPL represented a 7% weighting in the SP5. I am not suggesting anything….just some factoids from Market history.
The QQQs has had 4 unfilled gaps in a row with is very rare. The SP 500 itself made barely any gain today on higher volume often which often signals exhaustion while the breadth numbers were again flashing a spotlight on the negative divergence as Declining Issues led Advancers 2.4 to 1 and Down Vol led Up Vol 1.6 to 1. The Fed cut ¼ pt as planned. The QQQE and RSP, equal weighted versions of the QQQ and SP 500 respectively, show the lack of participation from the average stock today.
We can only play the cards we are dealt…..if you are in the QQQ, Mag7 or TQQQs, or the Computer Storage stocks ( STX WDC SNDK MU), it has been great few days. But much of the market is not participating and leaving investors that are in in the wrong names frustrated.
FL Update
AVGO triggered our buy yesterday from the CwH base pivot. And it followed thru today with an OEL Candle ( Open Equals Low) which is a bullish candle.
As far as MSFT setup, it has been trading down after hours on E Report and as far as the Focus List, the trade is scratched. Of course, all of you traders can take any sytup you see but as far as tracking FL ideas, I am taking MSFT off the list for now.
More in Friday’s GMU.
Trade Well
J