So far it has been the big caps like Google, MSFT, AAPL, and NVDA that has carried the NASDAQ 100 up higher, but now we can see that the Equal Weighted NASDAQ 100 is getting ready to break through resistance after making a series of higher lows and it is likely going to target at least an 88.6% Fibonacci retrace. At this time, we may see the NASDAQ 100 itself...
The volume below is very thin (yellow highlight), and the chart trend is downward and weakening. The equal weight index actually performed a little better than the weighted index during the selloff, retracing only 42% versus SPY 50% during the period of Covid low in March 2020 to all time high in January 2022.
There are three lines of potential support, all at...
QQQE (equal-weighted) looks like its relative strength versus QQQ (market-cap weighted) is about to turn around. There is close to a 5% gap between QQQ and QQQE.
I believe that gap closes and then QQQE begins to outperform. The big names have seen their day in the sun, it's time for the rest of the tech stocks to shine.
This also gives equal weight to the...
Diversifying your strategy
There are lots of ways to "win" at investing. For diversification, it can be useful to bet on a lot of different strategies, because often when one strategy starts to go wrong, another will start to go right.
But unless you're an expert coder with a lot of free time, you probably can't actively manage multiple different strategies...
Back in September I posted about the rotation from value to growth, and I laid out three targets for the ratio of RSP (an equal-weighted S&P 500 ETF) to SPY (a cap-weighted S&P 500 ETF).
I updated the idea in November to note that the trade was playing out as planned and had hit my second target.
In January, we finally hit my Target #3, bringing the...
