The next 2 weeks, Enter The Dragon..!
As it is obvious US dollar index DXY has a negative correlation with major indexes..! and it made a spinning bottom pattern ready to fly in the next 2 weeks!
I believe in the next 2 weeks Red will become the major color and it will not be limited to small caps!
Why My Portfolio is Red???
These days many traders and investors asked me why their portfolio is red every day but all major indexes are green every day?
To answer this question correctly we should evaluate the market with more details.
Let's categorize the market based on market cap:
We have 5 companies with a +1000 Billion USD market cap: AAPL, MSFT, AMZN, GOOG, GOOGL. They had a 9-11% gain in the last trading month. (100%)
We have 84 companies with a +100 Billion to 1000 Billion USD market cap: 71 had a +ve gain in the last trading month.(84.5%)
We have 90 companies with a +50B to 100 Billion USD market cap: 84 had a +ve gain in the last trading month. (92.3%)
We have 543 companies with a +10B to 50 Billion USD market cap: 455 had a +ve gain in the last trading month. (83.9%)
We have 2595 companies with a +1B to 10 Billion USD market cap: 1675 had a +ve gain in the last trading month.(64.5%)
We have 2399 companies with under 1 Billion USD market cap: 1051 had a +ve gain in the last trading month. (43.8%)
It is completely obvious that companies with lower market caps performed poorly.
Now let's look at the companies which paid dividends, 1551 out of 4838 companies pay dividends to their shareholders. 1173 out of these 1551companies had +ve gain in the past trading month. (75.6%)
On the other hand, we have 3279 companies that do not pay dividends, 1657 out of them had +ve gains in the last trading month. (50%)
In conclusion, we can say money moved to large caps and companies that pay dividends, and those who invested in small-cap companies felt what bubble burst means.
I believe in the next 2 weeks Red will become the major color and it will not be limited to small caps!
Why My Portfolio is Red???
These days many traders and investors asked me why their portfolio is red every day but all major indexes are green every day?
To answer this question correctly we should evaluate the market with more details.
Let's categorize the market based on market cap:
We have 5 companies with a +1000 Billion USD market cap: AAPL, MSFT, AMZN, GOOG, GOOGL. They had a 9-11% gain in the last trading month. (100%)
We have 84 companies with a +100 Billion to 1000 Billion USD market cap: 71 had a +ve gain in the last trading month.(84.5%)
We have 90 companies with a +50B to 100 Billion USD market cap: 84 had a +ve gain in the last trading month. (92.3%)
We have 543 companies with a +10B to 50 Billion USD market cap: 455 had a +ve gain in the last trading month. (83.9%)
We have 2595 companies with a +1B to 10 Billion USD market cap: 1675 had a +ve gain in the last trading month.(64.5%)
We have 2399 companies with under 1 Billion USD market cap: 1051 had a +ve gain in the last trading month. (43.8%)
It is completely obvious that companies with lower market caps performed poorly.
Now let's look at the companies which paid dividends, 1551 out of 4838 companies pay dividends to their shareholders. 1173 out of these 1551companies had +ve gain in the past trading month. (75.6%)
On the other hand, we have 3279 companies that do not pay dividends, 1657 out of them had +ve gains in the last trading month. (50%)
In conclusion, we can say money moved to large caps and companies that pay dividends, and those who invested in small-cap companies felt what bubble burst means.
