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To: RWS who wrote (40362)9/20/2024 7:08:58 PM
From: skinowski  Respond to of 41466
 
Relative weakness of the NDX stocks. I think I posted about this recently - QQQ underperformed “even” low volatility etf’s like USMV, looking back 8 months.

That was enough for me to lower my exposure to QQQ.

Do the Q’s lead the broader market? Over the years, I’ve seen some studies suggesting this. Will check it over the weekend and post if I find anything interesting. This was clearly the case in early 2022, on the chart in question - as well as for the upturn, once the 2022 bear market bottomed.



To: RWS who wrote (40362)9/21/2024 9:10:48 AM
From: skinowski2 Recommendations

Recommended By
kckip
RWS

  Respond to of 41466
 
Looks like during significant bull (bear) moves the $NDX / $SPX ratio is above (below) its moving averages. So, NDX leads. It could be cleaned up, but it’s still not a great indicator - since the ratio may be ranging for periods of time, and there are whipsaws.