Posted Feb 16, 18:29

Trouble with Concentrationمشكلة مع التركيز

Trouble with Concentrationمشكلة مع التركيز  Chart
Feb 16: 

You've all read about the surging concentration of fewer stocks (Magnificent 5) controlling the latest record breaking rallies in indices. This reminds me of exactly 4 years ago today, when the FAANGs were making up over 40% of the rally, especially during that late upward thrust from October 2019 to the peak of February 2020.  The current rally also reminds me when I started shorting SPX in Nov 2019 and held on thru the selloff of late Jan 2020. The profits were short-lived as the market rebounded to hit a new high into 19th of Feb 2020, forcing me out of the position before ... markets collapsed on Covid-19.

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Polls, Trillion Bitcoin, SPX Gap & VIX Count Feb 15, 2024 16:13: 

Bitcoin's market capitalisation regains $1 trillion for the 1st time since late 2021, it reminds us that it was 3 years ago minus 4 days when it first broke this landmark. As Bitcoin approaches Meta, the inevitable cross-over (BTC > META) will draw more scrutiny as Meta is the 2nd fastest gainer YTD of the Magnificent7  at 38%, versus NVDA (51%), AMZN (12%), MSFT (9%), GOOG (2%) and AAPL (-2%). 


Why the Dow30 Now? Feb 13, 2024 18:11: 

Anyone who is/was a member of the WhatsApp Bdcast Group, would know I dislike trading the DowJones Industrials Index (DOW30) due to its higher margin requirement. I usually pick the Nasdaq100 or SPX500. But over the past 3 weeks, I'd been warning the Group to prepare for shorting the DOW30. We eventually pulled the trigger last week and we're still in the trade. So why the Dow30 this time? We cited 5 reasons, some of which are listed below: