Nasdaq 100
Recent reports
that the sale of flagship products of Apple Inc. has slowed down led to a selloff
in the Apple stock in the beginning of June last month. This also had a rub off
effect on other stocks bearing a heavy weightage in the index, consequently
leading to a drop in the index as well.
Together
Apple, Microsoft, Amazon, Google (Class C Stock, however the charts show Class
A Stock) and Facebook contribute to 33% weightage in the Index – Nasdaq 100.
Apple’s stock individually is the single largest contributor to the Index; it’s
weight being close to 15%, immediately followed by Microsoft (weight 7.4%).
With the
earnings season kicking in, it will be interesting to observe if the growth in
earnings of these stocks has been consistent with their respective prevailing PE
multiples.
However
recent stock price action of the above five stocks has clearly indicated
weakness and the selling pressure is evident through the pattern of the multi-period
candlestick charts of these stocks.
The author can be contacted at: riskadvisory@outlook.com.
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