Ted David,
I have not heard the following mentioned on CNBC, which I feel some or many of your listeners may be interested in.
We all know the hype of the NAZDAQ and NAZDAQ 100 setting new highs, but I believe few realise that the new highs were basicly made on the back of one stock, QCOM. It was mention by another SI poster, OX, that every 100 point move in QCOM was about a 150 point move in the NAZ 100 index, which of course effects the NAZDAQ similarly.
I dont have the exact figures, but my calculations show that QCOM makes up about 1.5%-1.6% of the NAZ.
In the last 10 trading days the NAZ 100 moved from about 2600 to 2875(275 points), and QCOM moved from 225 to 400(175 points). Assuming QCOM's weighting of the NAZ-100 of 1.5% is correct, then that means that in the last 10 days during the move from 225 to 400(175 points), QCOM accounted for approximately 263 of the NAZ-100's 275 point up-move(96%).
In the past we heard often how the market was moving on the back of fewer and fewer stocks, but I never thought that an index as important as the NAZDAQ-100 would move on the back of only 1 stock. If QCOM continues to do well that will be fine for the NAZ-100, but if QCOM loses 100-200 points that would not be so fine. Im dont think it is very healthy that so much is reliant on 1 stock, considering that a good portion the eurphoria right now is caused by the NAZ, and that the majority of the recent up-move in the NAZ was really on one stock.
Again, I have not heard that mentioned on CNBC, but I and many of the viewers I speak to feel that it should be mentioned on CNBC as good reporting.
seeya and thanks. |
