XJO 0.32% 5,864.5 s&p/asx 200

Mon, 3 Aug - Tech vs The World

  1. 2,162 Posts.
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    When in market histroy has concentrated risk been a good thing?

    The S&P500 is highly tech concentrated.

    Last week Big 5 tech earnings were good, consirdiring the circumstances. AAPL posted good numbers. FB's numbers were steller consirdering the ads boycotting, AMZN too. GOOG revenue generation was good, but showing weakness in their bottom line margins.

    However, every other sector: financials, energy, materials, industrials, consumer staples/disc is showing weakness. Financials down 25% YTD and Energy circa 40%. (US data)

    Concumer discretionary ETF's are up 7% YTD in US but they are all concentrated to AMZN. In some cases 25% AMZN?????

    US Market divergence right now is huge.
    NASDAQ up 22.96% YTD
    S&P500 up 0.51% YTD
    RUSSEL down 11.11% YTD

    I said it last week and i will say it again. The path of least resistance is UP for the S&P500. The index gained 1.61% last week and I am expecting further upside this week. S&P500 wants 3300 and NDQ wants 11,300.

    As for the XJO, risk looks scewed to the downside. Daily chart is looking increasingly weak and some very strong red days last weak is an ominous warning.

    Our market drifts higher based on overnight market tracking. But our day session doesnt show the same resilience.

    Our market make up is mainly financials and miners. Companies producing 5-7% bottom lines and large fixed overheads completely dependent on economic demand and highly leveraged.

    Trade Safe Everyone
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