Didn't they reduce the index weighting in the Nasdaq indices for the big 5 from 40% to 20% in January? I would think a sell-off in Microsoft may be a non-event or at worst a needed short-term consolidation. For every $ 2 in Microsoft sold now as opposed to last December, it is like $ 4 going into other Nasdaq stocks.
As for the parabolic Nasdaq stocks, most aren't that related to MSFT:
Electronics-Semiconductors & Semiconductors Equipment (13)
ALTR, ATML, CNXT, INTC, JDSU, LLTC, MCHP, MXIM, SANM, VTSS, XLNX
AMAT, KLAC
Telecom-Equipment & Services (7)
CIEN, JDSU, LVLT, QCOM, TLAB
NTLI, WCOM
Software-Applications (8)
CTXS, ERTS, INTU, LGTO, ORCL, PMTC, SEBL, SNPS
Computer-Hardware & Peripherals (2)
AAPL, ADPT, APCC
Miscellaneous (2)
CEFT, USAI
There are also the non-parabolics that just kept their uptrends intact throughout the correction(s): (6)
ADBE, CMVT, NXTL, PAYX, SUNW, VRTS
It would appear that the SOX still hold the key to the market. The first leg from October 1998 took the index up about 245 points from 182 to 428. The second leg in the Spring about 235 points from 345 to 580. And this, the third leg has the base low at 475 is now up almost 150 points. |
