Adrift
The Qs have been a bit adrift this morning,
yet are maintaining an hourly uptrend that began on Monday which has provided
some guidance on the late-morning pullback. Pace and volume have again been on
the lighter side, which may very well often be the case throughout this holiday
trading season. For those trading longer time frames, daily stochastics have
begun a subtle turn northward and the slope and resilience of the hourly support
should provide clues as to any further continuation.
Tuesday December 18,
2001Â 12:00 PM EDT
(1)
Approx. Equivalent QQQ Price
Yet another
indication of the burst technology bubble can be seen in this year’s update of
the Nasdaq 100 Index. As is the case each year at this time, the Nasdaq has
adjusted the composition of its heavily monitored and proxied index, and the
impact has been a noteworthy shift from technology to health care and consumer
goods. The result is an index technology weighting which has dropped to 66%.
This year’s additions include
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IMCL |
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CHTR |
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SYMC |
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SEPR |
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IVGN |
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ESRX |
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CEPH |
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CYTC |
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ICOS |
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PDLI |
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CDWC |
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former high-flyers
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ARBA |
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BVSN |
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CMGI |
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CNET |
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COMS |
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INKT |
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LVLT |
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MCLD |
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MRNX |
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NOVL |
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PALM |
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RNWK |
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capitalization, the “perceived prestige” effect for companies in the
latter group seems analogous to finding a lump of coal in their stockings.
Good Trading!