Found this on the iHub QQQQ board...
John Bollinger, CMT, of Bollinger Capital Management, pointed out that we can quantify this narrowing by examining weighted and unweighted measures of the same index. He found that the Nasdaq-100 ETF (also called PowerShares QQQ Trust ), which represents a market-capitalization weighted compilation of stocks, was up nearly 25% year to date but the unweighted version of this ETF is up only 18%. Performance in the bigger Nasdaq stocks has masked the lesser performance of the rest.
Alan Newman, editor of the Crosscurrents newsletter, added that one third of the advance in the Nasdaq-100 is due to just two stocks, Apple and Google. These are the types of statistics that can put the market in a precarious position. If something were to go wrong with only a few of the leading stocks, then indexes would be hurt. But on the other side of the argument, as long as these leaders remain strong so, too, will the market.
Pick your poison. Place your eggs in a narrow basket or bet against stocks that are just plain powerful. Either way, risk is elevated and picking the right stocks is critical. Forget the dart board and keep a very close eye on the Nasdaq-100. There is your rainmaker.
Is it any wonder tne NDX/QQQQ performance at times is so inexplicable?
