Finally, it's THIS index's turn to shine
By Shawn Langlois, MarketWatch
Everywhere, a new high (http://www.marketwatch.com/story/sp-500-on-track-for-6th-win-in-a-row-as-stock-futures-edge-higher-2017-10-03). The S&P. Blue chips. Small-caps. Regardless of whatever brutal headline comes our way and threatens to derail this bull market, every major U.S. index just continues to push deeper into uncharted territory.
OK, maybe not every.
The tech-heavy Nasdaq-100 hasn't broken any records in... days!?! In fact, you'd have to go all the way back to Sept. 13, 2017, when it hit a closing high of 6,004. The index's intraday record was hit less than a week later at 6,013.
Dragonfly Capital's Greg Harmon says investors are making WAY too much of this little blip of underperformance.
"How lazy and demanding have we become? With the S&P 500 index , Dow Jones Industrial Average and Russell 2000 (IWM) making new all-time highs, all we can talk about is why the Nasdaq-100 is lagging. Lagging?," he wrote in a blog post (http://dragonflycap.com/the-lagging-nasdaq-100/). "It reversed out of its pullback last week and has been up 4 out of the last 5 days. Monday it closed less than 25 points from its all-time high."
He used this chart to back his claim.
Harmon pointed out that just two weeks ago, it was the Russell 2000 missing out on new records, as it was stuck in a relative rut that lasted for a couple months. "Like a big brother letting the little brother catch up and take a lead for a while," a rotation out of the Nasdaq-100 paved the way for the Russell to get back in favor, he explained.
Now, with momentum on its side, it's the Nasdaq-100's turn again.
"Have a little patience," Harmon said. "This market with its long periods of low volatility and sideways consolidation lulls you to sleep. Then, when you are looking away a major move happens. Don't look away. The Nasdaq-100 looks strong."
-Shawn Langlois; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires