The Big NASDAQ-100 Components Failing To Hit New Highs
The strength in stocks like Facebook and Microsoft is propelling the NASDAQ-100 index to new highs — but not everyone in the group is cooperating. Before you get too excited about the headlines of “new all time highs in the tech index,” consider the inability of key, big-name components to join in on all of the fun.
With so much new money coming into the tech exchange traded funds like $XLK and $QQQ, you might expect the following well-known brands to be hitting new highs as well. That expectation is not being met. At least, not so far for Apple, Comcast, Paypal, Starbucks and Tesla.
Let’s take a look at the price action.
While the NASDAQ-100 this week makes headlines after hitting a higher high, Apple could not get back up there. Tim Cook’s company peaked in January of this year and can’t seem to climb to the old level. Note how both the relative strength index (RSI, above the price chart) and the moving average convergence/divergence indicator (MACD, below) are moving negatively vis a vis price.
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The stock hit its peak price in March and, thus far, is unable to climb that high again. The big tech firm continues to uptrend well above the green Ichimoku cloud. As with Apple, though, the relative strength indicator and the moving average convergence/divergence indicator suggest a definite loss of steam. Comcast is not among the NASDAQ-100 leaders making it up to the “higher highs” stage.
The February, 2021 peak of 310 remains the all time high. Paypal trades in a long-term uptrend but this week’s high of 293 puts it on the list of big tech stocks not quite keeping up with the larger tech index. You can see the decline in relative strength (RSI) above the price chart and note the steady decline in volume from last November to the present.
This week’s price is lower than the April/May peak — another failure to keep up with the NASDAQ-100 as a whole. The relative strength indicator above the price chart indicates a weakening of momentum. The moving average convergence/divergence indicator below the price chart is in negative divergence mode. You might expect further upside than this for a post-pandemic coffee shop chain, but no.
The electrical vehicle manufacturer is way behind the big tech index despite a good positive week. Tesla’s got a long way to go to catch up with the other major brand names that make up the NASDAQ-100. It’s peculiar to see how much the volume levels have shrunk over the past 18 months during which time CEO Elon Musk has been active on Twitter about cryptocurrencies.
So you can compare the total index with the above key components that haven’t been keeping up.