What is wrong with the NYSE? Â
The NYSE Composite Index consists of 1,600 US and 400 Foreign Corporations, it was re-weighted in Jan 2003 with a value of 5,000 points and hit 10,000 on June 1st, 2007 and topped out at 10,400 in Oct, 2007, dropping all the way back to 4,650 almost exactly 5 years ago, in March of 2009–when I was pounding the table for 3 hours on TV, telling our Members to BUYBUYBUY. Â
Our 13 bullish trade ideas from that marathon broadcast (which included ideas for Blue Chips like GE, BAC, & DIS, as well as TGT, AMZN and index plays on the Russell and Financials)Â turned $13,000 invested into $61,000 just 6 months later (up 469%) but opportunities like that only come along if you have CASH!!! to deploy. Â
CASH!!! is our currently preferred position as the NYSE Summation Index is flashing a seriously overbought signal at us.  This is not to say it can’t get more overbought – just that we don’t feel the need to participate in the Extraordinary Popular Delusions and the Madness of the Crowds at the moment. Â
The top 20 holding of the NYSE are XOM, JNJ, GE, WFC, BRK.B, CVX, PFE, PG, JPM, IBM, NVS, HSBC, VZ, BAC, T, MRK, KO, BP, TM and C.  As I mentioned in yesterday’s Live Webcast (replay availabale here), the Russell is pumped up by biotechs, like BDSI (up 670% last year), THLD (up 490%), ELU (405%), SNSS (395%), ARNA (350%), PCYC (325%), OREX (255%), etc.  Think how many stocks would have to go to zero to offset gains like that! Â
So there’s our Russell outperformance in a nutshell and the Nasdaq has had similar tech plays like TSLA and their 300% year (doubled already this year) and Musk’s other pump-fest, SCTY, which was up 438% in 2013.  Again, 7 normal companies could drop to $0 and those two would offet to keep things even. Â
As it is, when you have just one TSLA, it adds 3% to the entire index for the year.  How many market faults are being masked by a few massive gainers?  That’s the question we’d like to answer before chasing these all-time market highs…
