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I know it is an options expirations Friday before Thanksgiving, but I almost always become hesitant to embrace the bull case when the Nasdaq Composite lags the major indices like it is this morning. As you know, many of the high growth firms are house in the Nazzy, lending itself to a pretty good indicator of risk appetite, or lack thereof. I mentioned on my recap last evening that I probably would not put on any new longs so long as the Nasdaq Composite failed to recapture 2600. Thus far today, we have yet to see that event materialize, despite the Dow Jones stodgy mega caps, as well as the transportation stocks acting well. The S&P 500 also fell back inside that 1120-1220 range from the summer, which to me means that it is best to just let the dust settle here. With OPEX and the major holiday coming up, I expect volumes to dry up as well as trading edges.
inclined to agree…. silver looks very strong though. oil lagging badly as well
The $RUT, another proxy for risk appetite, has held up pretty well in a relative sense. Down 3.01% for the month as of yesterday’s close compared to down 3.59% for the $COMPQ and down 2.97% for the $SPX.
Trannies need more masking tape