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.
Nasdaq 100 Hits a New High
by Jay Pestrichelli on January 19th, 2012
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.
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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