2024-02-26 02:09:26 ET
Summary
- Small caps led the year-end rally, but there has been divergence among glamour stocks like Tesla and Apple as the Nasdaq 100 rallies.
- I make the case that owning the JPMorgan Nasdaq Equity Premium Income ETF over the Nasdaq 100 ETF is warranted heading into a sometimes-bearish calendar period.
- The JEPQ has nearly doubled in AUM and continues to attract new money, offering exposure to large-cap growth stocks in QQQ.
- I outline key price levels to watch on the chart.
It has been an incredible run for the broad stock market since late October last year. Small caps led the year-end rally as a broadening out of 2023's rally was a welcome development for many value investors and those owning risk-on cyclical stocks. The growth trade was not done, however. Despite a garden-variety pullback from late July through the early part of the fourth quarter, the Magnificent Seven returned to favor starting around the holidays. But we have also seen divergence among that handful of glamour stocks. Tesla (TSLA) has tumbled, while Apple (AAPL) has traded relatively poorly compared to the S&P 500 in the last few months....
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Turning More Cautious On The Mag 7, Prefer JEPQ Over QQQ (Rating Upgrade)