Nasdaq 100 Hits a New High

by Jay Pestrichelli on January 19th, 2012

As of 10:55 ET today, the Nasdaq 100, hit a new 11-year high of 2443 breaking the previous intra-day high of 2438 set on July 26th.

Just one month ago, the NDX closed at 2215 and was looking to be range bound and technicians couldn’t made a decision on direction as the market was putting in lower highs and higher lows. The 10% run since has shown some strength over the S&P 500 Index and the Dow Jones Industrial Index each up 8.8% and 7% respectively.
QQQ is the ETF that mirrors the NDX, and when we think of the Q’s, we think tech stocks. But did you know that only 65% of the stocks in the Nasdaq 100 are categorized as techs? Yes, Apple, Microsoft, Oracle, Google, and Intel make up the top 5 holdings of the Q’s, but there’s also consumer cyclical like Costco and Healthcare like Amgen that are in there too. Actually the breakdown for the Q’s is as follows:

65% Technology
13% Consumer Cyclical
10% Healthcare
5% Communication Services
4% Industrials
3% Consumer Defense

Well, you may say that tech drove this rise and that’s partially true. The pure tech play ETF XLK was up about 8% over that same time period. Believe it or not, the Industrial sector was up the most at nearly 12%.

Take a look at the top 5 holdings of the Q’s, Apple was the only one that outperformed the ETF. We’ve said it before and I’ll repeat it again, picking individual stocks as winners is a tough business. Stick to the Broad-based ETFs as core holdings and you’ll be able to be surprised once and a while when they seem to beat all the popular names.


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