oneq posts

Feed

Second time around for the NDX-Nasdaq switch?

After a major run-up that began in earnest this past summer, the Nasdaq 100 index peaked relative to the Nasdaq Composite index about six weeks ago. The large cap-laden NDX then staged a short but sharp correction.

More recently, however, the ratio has bounced back and is once again nearing resistance at the October highs. The shares of larger companies have no doubt been boosted by stampeding institutions anxious to put money to work in what appears to be an early "Santa Claus" rally.

Still, given how circumstances panned out previously, it may be time to look for another pullback in the Nasdaq 100 in comparison to the broader technology-based index.

One way to play it (depending on risk tolerance): buy the Fidelity Nasdaq Composite Index Tracking Stock ETF (NASDAQ: ONEQ) and sell (or sell short) the Powershares QQQ Trust ETF (NASDAQ: QQQQ).

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle.

Symbol Lookup
IndexesChangePrice
DJIA+72.8112,874.04
NASDAQ+27.512,931.39
S&P 500+9.131,351.77

Last updated: February 13, 2012: 05:57 PM

Hot Stocks

General Electric

19.07+0.195(+1.03)

Alcoa

10.33+0.04(+0.39)

Apple Inc

502.60+9.18(+1.86)

Google Inc 'A'

612.20+6.29(+1.04)

Bank of America

8.25+0.18(+2.23)

Wal-Mart Stores

61.79-0.11(-0.18)

Exxon Mobil Corp

84.42+0.62(+0.74)

Ford

12.54+0.10(+0.80)

Citigroup

32.88-0.045(-0.14)

IBM

192.62+0.20(+0.10)

Yahoo

16.12-0.02(-0.12)

Starbucks

49.25+0.43(+0.88)

Microsoft

30.58+0.085(+0.28)

Home Depot

45.93+0.60(+1.32)

DailyFinance Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

Page Loaded in 1329173858324 ms.