Signs of Rotation
- Posted by Greg Harmon
- on September 17th, 2013
The stories relating Monday’s stock market action will focus on the sell off that happened after an elated rise overnight that coincided with Larry Summers withdrawing his name from consideration as Federal Reserve Chairman. All markets did sell off, but if you look a little closer some were stronger than others. Below is a two day plot of the 5 minute price action in 5 major market indexes, the Dow Jones Industrials ($DJIA, $DIA), Dow Transports ($TRAN, $IYT), S&P 500 ($SPX, $SPY), Russell 2000 ($RUT, $IWM) and Nasdaq 100 ($NDX, $QQQ). All show the Summers bounce. But contrast the differences in the price action from there. The Nasdaq 100 at the bottom started heading lower immediately and by 1:30 was negative on the day. While the Dow Jones Industrials and Transports held pretty steady and finished
with good gains on the day. In fact the more the index was focused on large cap names the better it did Monday. This is particularly interesting for a couple of reasons. First, there has been much made of the Dow Generals not making new higher highs as the smaller cap indexes have. Monday was in a way some catch up for them. With the Nasdaq 100 and Russell 2000 leading the latest leg higher, perhaps this is the start of a rotation back towards the large cap names. Only time will tell, but it may pay to keep your mind open to the possibility.
Dragonfly Capital Views Anniversary Celebration
For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $600.
This is 20% off of the standard annual subscription price and nearly 45% off of a rolling monthly membership! Don’t miss this limited opportunity to join or upgrade! 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)
- Top Trade Ideas for the Week of May 4, 2015: The Rest
- Top Trade Ideas for the Week of May 4, 2015: The Rest Premium
- Top Trade Ideas for the Week of May 4, 2015: The Best
- SPY Trends and Influencers May 2, 2015
- Macro Week in Review/Preview May 1, 2015
- Premium Earnings 5-1-15
- The S&P 500: From Hero to Zero in 4 Days
- Oil is Gushing!
- Premium Earnings 4-30-15
- Is Inflation Poised to Rise?