The Nasdaq’s Hips Don’t Lie

I made this observation for 12631 members inside our chat room this morning:

chessNwine

The Nasdaq is lagging the major indices again today. Usually that is not a good sign for bulls, especially with the Euro soft. Mixed bag today.

10:36:44am EST on Tue, Nov 29, 2011

Since then, the Nazzy has turned red, and many stocks underneath the surface are lethargic. Keep in mind that many high growth stocks are housed in the Nasdaq, which makes it an important index to monitor for risk appetite, even more than the Dow Jones Industrial Average with its stodgy, old firms.

While we may still be in end-of-month bounce mode, when I see the consumer staples (XLP) clearly outperforming the Nasdaq today, I am in no rush to throw money into the pot.

Compare the two intraday charts below of the XLP versus the Nazzy. Not exactly a full “risk on” trade, just yet.

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