2024-07-15 11:47:11 ET
Summary
- The Nasdaq 100 underperformed the Russell 2000 last week as traders sold off the winners and covered the shorts.
- The trigger was the below expectations CPI report, and the falling inflation usually accompanies the recessions.
- The QQQ bubble has not busted yet, however, the upcoming earning season could trigger the burst if there are key disappointments by the mega-caps.
The rotation out of tech
Over the last 5 days, the ETF that tracks the tech-heavy Nasdaq 100 ( QQQ ) was down by -0.28%, while the ETF that tracks economically-sensitive small stocks in Russell 2000 ( IWM ) was up by almost 5%.
Note, IWM is now up by just over 6% YTD, thus almost all the gains for the year happened last week, while QQQ is up by 21% YTD....
Read the full article on Seeking Alpha
For further details see:
QQQ: Benign Rotation Or The Bubble Burst?