Tony, Re the AMZN conundrum
>> 'Speculative' bubble? top reached? Good time to short ?? <<
There's a new piece to this puzzle.
ALAS --- having little instinct for gambling --- during this year's Amazing joyride, I've steadfastly refused to enter at what has always appeared (to me) to be the top of a ridiculous bubble. (I can't help wishing I'd gambled just a little, taken some nice profits, and invested them in value stocks.)
But look who's buying Amazon NOW! The Nasdaq!!
In the annual changes, effective Dec. 21, AMZN will be one of five issues swapped into the Nasdaq 100.
Does this validate and prolong this bubble? Will news about this fuel another AMZN price spike?
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This Nasdaq action blows my mind. The Nasdaq 100 is a "product," a hedging device. I can barely imagine the impact this change will have on computerized buy/sell programs that include the NDX in their algorithms.
This whole market blows my mind. Baghdad is being bombed, the American president is about to be impeached by the House, and the U.S. and European and Asian markets are all up. None of this makes any sense to me. I'm lost, confused, hopelessly out of it ........
Good luck observing, guessing and trading! (to all) ;-)
Cheryl
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News about the Nasdaq 100 Index Changes:
nasdaq.com.
PS -- There's another significant change in the Nasdaq 100 process.
The NDX will nolonger be completely capitalization weighted.
Thus, the five top issues that currently compose 61% of the index will be reduced to 40%. |
