Before the Holidays the chart below was posted with the title “Tis the season” (see post here) suggesting that should the Russell break resistance, investors will want to “Buy the Breakout!”
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Below is an update on the Russell and its relative performance comparing it to the S&P 500 and the Nasdaq 100, after its breakout.
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Above is another example of the “Power of the Pattern” and why it pays to buy breakouts! Copper has been on a terror of late, after it broke above its 4-year resistance line (see post here) Check out its relative outpeformance to gold and silver of late (see post here) The reason I have suggested owning the Russell over the NDX and S&P over the past many weeks is due to the above breakout. Now another key breakout could be taking place that I will want to follow.
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Game Plan… If you are an aggressive investor, buy the NDX 100 right now with a 4% trailing stop. If you are a conservative investor, buy the NDX a couple of percent higher, making it prove that the breakout of the 2007 highs at (1) has really taken place.
Hey Aaron…good question. No they aren’t. The Nasdaq Composite is a broad based tech index and the NDX 100 is only 100 stocks. Yes the Q’s do follow the NDX rather well.
Chris
Hi Chris,
Is the Nasdaq Composite and the Nasdaq 100 one in the same?
If so, is 2217 correct because the Composite was at 2653 this morning?
Does QQQQ follow the Nasdaq 100?
If not, what ETF does?
Thanks,
Aaron