Afraid to Trade Blog - Latest Comments in NASDAQ Leads the Charge

Re: NASDAQ Leads the Charge

Corey Rosenbloom — Wed, 10 Oct 2007 11:29:42 -0000

Aaron,

True, the NASDAQ is far more weighted than the Dow or even the S&P;, and the stocks you mentioned are indeed getting extended into the stratosphere, buoying the entire index. I need to go back and see which stocks are not participating - actually I need to view the entire NASDAQ 100 and get a sense from there. If the other stocks aren't participating, then that would be a major divergence, and breadth readings tend to be more reliable than price readings.

It's an interesting situation, given the backdrop of negative news we keep hearing about recession, slowdown, financial doom, etc.

There's definitely a mental disconnect that is hard to overcome. I'm looking for the resolution soon.

Thanks!

Re: NASDAQ Leads the Charge

Aaron — Wed, 10 Oct 2007 10:49:09 -0000

One of the concerns I have over the strength of the Nasdaq is that it does seem that some of its biggest cap stocks are pulling most of the load. The AAPL, RIMM, GOOG, AMZN, etc. group has been fueling a lot of the gains of late. I think it would be a good sign for the market if the Nasdaq can continue to see strength without these largest stocks always charging higher.

Re: NASDAQ Leads the Charge

Corey Rosenbloom — Tue, 09 Oct 2007 21:29:56 -0000

True, I'm with you 100%. Psychologically - and personally - I cannot enter (long) at these prices, but because of my system, I really can't go short either. I look for opportunities elsewhere, and may play (enter) any pullback, as any pullback to the rising 20 will cause an "Impulse Buy" trade to trigger (thanks to the new momentum highs).

One can definitely short here, but it's out of my comfort zone. I tend to stay away from highly volatile stocks anyway (that's just me - I'm a risk-averse, 'build wealth slowly' trader).

We'll all be watching!

Thanks Jonathan.

Re: NASDAQ Leads the Charge

Jonathan — Tue, 09 Oct 2007 20:31:06 -0000

Should be interesting to see if GOOG, AAPL, and RIMM ever roll over. They've already gone parabolic. I continually find myself routing for a long candle to the downside, slight retracement or consolidation and a crash...got to stop day dreaming.