NASDAQ SECTORAL ANALYSIS

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NASDAQ SECTORAL ANALYSIS

NASDAQ SECTORAL ANALYSIS

Will the rally continue?

The NASDAQ (INDEXNASDAQ:.IXIC) has edged lower as of mid-day following a mild slump over the week. This is also following a slow rise over the past couple of weeks. Could a correction be in sight?

The NASDAQ currently is at 5,274.15 and it is lower than the opening value of 5,307 falling -24.48(-0.46%). It also happens to be lower than the week’s opening of 5,304.47. However the NASDAQ is nearing a high when looking at it over a Year to date (YTD) time frame. In fact it is coming off of one of the best quarters since April of 2013 therefore much should be considered before turning your sentiment bullish. However the technical analysis is showing that a correction may be due in a few weeks.

This week’s winning sectors are Fiber Optics and Mobile Homes Builders

Fiber optics had the most amount of positive change recently on the nasdaq according to the Average weighted alpha. The change was +114.33 for the sector. The sector is comprised of stocks such as Oclaro Inc. (NASDAQ:OCLR) currently at $9.05 after moving lower by -0.185(-2.01%) and even Finisar Corp (NASDAQ:FNSR) currently at $30.17 after moving lower by -0.15(0.49%).

Mobile homes builders were the second most profitable sector. This sector had an average weighted alpha of +110.36. This sector is comprised of stocks such as Skyline Corp (NASDAQ:SKY) currently at $13.43 after rising by +0.03(0.22%) and THOR Industries Inc. (NASDAQ:THO) $84.52 after falling 0.89(1.04%).
This week’s losing sectors were Retail-Catalog Shopping and Retail-Major Dept. Stores Retail Catalog Shopping has the worst average weighted alpha of -46.73 for the week. This sector has just one company in it, Land’s End Inc (NASDAQ:LE) at $15 which remained unchanged.

Retail-Major Dept. Stores had the next to last average weighted alpha of -38.60 for the week. This sector -also has one company which is Sears Hometown (NASDAQ:SHOS) at $5.16 after it just fell by 0.02(0.39%).
Most other sectors had a positive average weighted alpha. What should be noted as well is the top 100 stocks in the NASDAQ. These stocks have an overall average weighted alpha of +145.06. This is even higher than that for the Fiber optics sector or any other individual sector. Therefore it is clear that it is really a number of stocks that are driving the NASDAQ.

This also raises concerns about the longevity of the bullish trends in the NASDAQ. How long will it last? In a few weeks the market will tell.