Blog Post: Day 29 of $QQQ short term up-trend, but it is a Tale of Two Markets; big cap stocks are distorting the cap weigthed indexes; see modified daily GMMA charts of the cap weighted $SPY compared with the equal weighted $RSP and $DIA, see $TSLA and $AAPL

@ 10:05 pm
GMI4/6
GMI-27/9
T210833%

The SPY ETF represents the cap weighted  S&P500 index. Thus the large cap stocks drive this ETF. The SPY is in a daily RWB up-trend, driven by the few rising popular big cap stocks.

However, RSP, which represents an equal weighted S&P500 index is in a down-trend.
This means that the cap weighted S&P500 index is masking the deterioration in most of the other stocks in the index. This is not good. The few huge winners are driving the index. We must be careful because the foundation on which the market’s advance is built is weak. Popular big cap stocks like TSLA and AAPL are driving the cap weighted indexes. The Dow is not cap weighted, and is also declining.
But the few popular large cap stocks look like this while most other stocks are declining, not a good sign. The nifty fifty, you may hold forever stocks of the 70s, were eventually decimated by the subsequent bear market. Be nimble and manage risk.

Screenshot

Blog Post: GMI declines to 4 of 6; More US stocks at yearly lows than highs on Friday (96 vs. 74); but $QQQ is at 27th day of short term up-trend; $NVDA is no longer in RWB up-trend and looking weak, see daily GMMA chart

@ 7:40 pm
GMI4/6
GMI-26/9
T210843%

NVDA has now closed below all 12 moving averages. (Dotted line is close.) It has also failed to hold its green line.

The GM is now at 4. The successful new high component is now negative and there were fewer than 100 new highs on Friday.

 

Screenshot