Can NQ make and hold new ATH without NYFANG index making a new ATH?

Discussion in 'Index Futures' started by MidwesternTrader, Aug 8, 2018.

  1. Not sure the last time this has happened, but I find it interesting. NQ on the verge of a new ATH, but the NYFANG needs a 5% move up for it to reach a new ATH.

    So the trades are either play NQ short for a breakout failure or NYFANG long as it needs major catch up to get back in line with NQ? Maybe use options to play both sides here looking for one index to make a bigger move than the other...

    NQ Aug 8.jpg NYFANG Aug 8.jpg
    SmallFry likes this.
  2. John9999


    FAANG makes up a large portion of I am thinking that it probably must also hit new highs... but hey.. NQ is 100 stocks... not just these 5
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  3. Isn't FAANG 10 stocks at 10% each? Maybe FAANG leads NQ will come down before it goes up?

  4. John9999


    FAANG = Facebook, Amazon, Apple, Netflix, and Google... those 5 make up 27% of the NAS100
  5. It will consist of the quarterly futures contracts of Facebook, Apple, Amazon, Netflix and Google's Alphabet plus another five actively-traded technology growth stocks: Alibaba, Baidu, Nvidia, Tesla and Twitter.

    It is also equally-weighted: each stock contributes 10 percent, regardless of market capitalization. It will have at least 10 stocks, but could contain more

  6. John9999


    what are you quoting? that sounds like an ETF or similar that has made an investment product.

    my source
  7. John9999


    YUP... read your link... they are taking the 5 FAANG stocks and adding in more assests and creating an index. It is not even using the common stock shares of FAANG, rather using futures contracts which adds leverage.

    so... to answer the original question. FAANG is the 5 stocks I quoted, the actual common stock shares. Not the futures or options. There are 100 stocks in the NASDAQ100 (the NQ) but they are dollar weight averaged. so, the bigger the market cap, the more % of the index they account for. That is a big deal when you have Apple and Amazon as the 2 largest market caps stocks out there.

    Hope that helps.
  8. so what is the chart the thread author MidwesternTrader posted?


    #10     Aug 8, 2018