Five stocks dominate the Nasdaq 100 ETF (QQQ) and traders should keep a close eye on these when trading or investing in QQQ. Apple (10.97%), Alphabet (9.34%), Microsoft (8.5%), Amazon (5.39%) and Facebook (4.98%) account for almost 40% of QQQ. After Facebook, the next biggest weighting is Comcast (2.92%) and it is a distant sixth. I guess we could create an acronym to capture this group because they will likely be dominant players for a while (AMAFA perhaps). With this in mind, I created a separate ChartList with these five stocks and SPY to compare performance. The image below shows CandleGlance charts with the 50-day SMA and 200-day SMA. SPY, Apple and Amazon are below their 200-day SMAs (red lines). SPY, Alphabet, Apple, Amazon and Microsoft are below their 50-day SMAs (blue lines). Facebook is the only one above both moving averages and clearly the strongest of the five right now. Apple is clearly the weakest, and the closest to a new low.
The StockCharts Technical Rank (SCTR) confirms what we are seeing on the price chart. The image below comes from viewing the ChartList in Summary format. Notice that Facebook has the highest SCTR and is the strong, Apple has by far the lowest SCTR and is the weakest.
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--Arthur Hill CMT
Plan your Trade and Trade your Plan
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