Is There A New Index Leader?
- Posted by Greg Harmon
- on August 14th, 2013
It has been pretty clear cut that the Russell 2000 has been leading this market higher since the November 2012 bottom. If you need any evidence take a look at teh performance chart below comparing the returns of the ETF’s of the Nasdaq 100 ($QQQ), Russell 2000 ($IWM) S&P 500 ($SPY) and Dow Jones Industrials ($DIA). Not only has the Russell been leading but the Nasdaq has been bringing up the rear.
But over the last few weeks that appears to be changing. Some are worried of an impending pullback in the rally as they focus ion the floundering Russell. But others are noticing that this just might be a a rotation from the Russell to a new leader. And that new leader looks to be the Nasdaq. Quietly it printed a new 13 year closing high on Tuesday as the other index ETF’s continued to consolidate. But it is the performance chart measuring it against the Russell that is most telling. Over the last 3 weeks the Russell 2000 is nearly flat, up 0.3% while the Nasdaq is up over 2.2%. Yes sir cowboys, there is new sheriff in town.
Join the Dragonfly Capital Views Premium Membership
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through July 2013 Expiry and sign up here
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Diagnosing CVS/Caremark
- Premium Earnings 7-24-14
- Fibonacci, Bats and Waves Point Much Higher for the Nasdaq
- The Shelves Are Packed at Walmart
- Premium Earnings 7-23-14
- What Does the VIX Say?
- Craving Some Tex Mex
- Premium Earnings 7-22-14
- Watching Key Long Term Trend in the Nikkei
- Downed Jets, Ukraine Conflict and Gaza Battle – JP Morgan Says ‘So What’