News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • EUR/USD attempts to halt a five day decline as the Federal Reserve sticks to the sidelines. Get your market update from @DavidJSong here:https://t.co/ig9bGLj35i https://t.co/YPksmNdJLR
  • US Markit Composite PMI for September fell to 54.5 from 55.4, whereby the services and manufacturing figures fell to 54.4 and 60.5 respectively, both missing analyst estimates. Get your market update from @JMcQueenFX here:https://t.co/4lFZGRufsM https://t.co/DuPcQtaBz0
  • S&P 500, Nasdaq Rally After the Fed; 10 Year Yield to Two-Month-Highs https://www.dailyfx.com/forex/market_alert/2021/09/23/SPX-SPY-ES-SP500-Nasdaq-NQ-QQQ-Rally-After-the-Fed-10-Year-Yield-2-Month-High.html https://t.co/peftVleO0y
  • #Bitcoin Outlook: $BTCUSD Bounce From 40K, Fake-out or Shake-out? - https://t.co/ixsRMKgCom https://t.co/KDQv4wgfot
  • While JPY gets clobbered, CHF decides to turn a blind eye to yields $CHF https://t.co/MViWZiiPZ7
  • The surprise 100 basis point cut from the Turkish central bank (to 18%) generated the expected pressure for $USDTRY. That said, I don't think it was the market that decided the momentum should die out at 8.8000 again... https://t.co/4jmOPnzzK9
  • surprised that $NQ is holding up so well with what rates are doing. 10 year yield at a 2 month high, $Nasdaq still holding resistance at prior support https://t.co/UBWBxY2nFC
  • The S&P 500 has recovered all the ground it lost at the start of the week and the Dollar has slumped post FOMC and PMIs. DailyFX's @JohnKicklighter gives a brief overview of the market for Thursday! https://t.co/jihKB44ELn
  • https://t.co/lbNvVbQq4n
  • The future taper isn't enough to urge the Dollar to a critical bullish break. In turn, $EURUSD has reversed shy of of August's trough and keeps in play an inverse head-and-shoulders pattern with a neckline at 1.19 https://t.co/EgUtX6Pmvy
Nasdaq 100 Outpaces Dow Jones, S&P 500. Has The Rotation Ended?

Nasdaq 100 Outpaces Dow Jones, S&P 500. Has The Rotation Ended?

Peter Hanks, Strategist

Nasdaq 100 Forecast:

Nasdaq 100 Outpaces Dow Jones, S&P 500. Has The Rotation Ended?

The Nasdaq 100 found itself in an unusual position in November as it lagged the Dow Jones, S&P 500 and even Russell 2000. The underperformance was attributed to a broad rotation away from technology stocks and into some of the more covid-sensitive industries like energy, industrials and airlines on news a potential covid vaccine was in the pipeline. As a result, the tech-heavy Nasdaq 100 fell behind its sister indices - until more recently.

nasdaq, dow jones, S&P 500 daily performance

Source: Bloomberg

As December has progressed, the Nasdaq 100 has once again begun to pull ahead of the Dow and S&P 500. Looking to Monday’s performance specifically, the Nasdaq 100 was the sole winner amongst the major US indices as popular names like Tesla and Apple notched notable gains. Suffice it to say, recent price action may suggest the popular sectoral rotation trade may be losing steam as investors look to favor technology once more.

Some Industrial Stocks Continue to Outpace Technology

nasdaq 100, dow jones, boeing and us steel corp price charts

Source: TradingView

That being said, there may still be some gas left in the tank for the sectors hard struck by coronavirus. While the broader flow into these baskets has slowed, some single-name stocks have continued to outperform. United States Steel Corporation (X) and Boeing (BA) are two industrial members that have outpaced not only the Dow Jones in December, but also the Nasdaq 100.

How to Pick Stocks – A Guide

While two examples cannot speak for the broader market, it does go to show there is continued interest in some stocks that might have encouraging recovery outlooks. Forecasting price action for these single stocks is another conversation altogether, but their recent outperformance might suggest the popular rotation trade that thrived in November lives on but on a smaller and more-targeted scale – an intriguing market landscape for stock pickers and value investors.

More broadly, it is currently unclear whether the Nasdaq 100 will leave the Dow Jones and S&P 500 in the dust like it did prior to November, but early symptoms are present. Still, with the inclusion of Tesla to the S&P 500 later this month, a lot has yet to unfold. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES