https://www.nasdaq.com/press-releas...lance-to-be-effective-july-24-2023-2023-07-07 Does anyone know what will be the impact on NQ/MNQ price ? Thanks
Special Rebalance may be conducted to address overconcentration in the index by redistributing the weights. There might be some selling on the big 5 stocks because ETFs like QQQ might have to adjust their allocation But they're going to re-allocate further down the index. However what makes the Nasdaq 100 Index are the heavyweights. Might be a slight sell prior to the market open on Monday, July 24, 2023 ? Not sure how these Exchange Traded Funds have planned their rebalancing ... Let's see.
Only happened twice in Nasdaq history (Dec 1998 and May 2011) soooooooooo .... I would go by this from the horse's mouth:- Nasdaq 100 Plans Special Rebalance To Curb Dominance Of 'Magnificent Seven' ......................... Nasdaq 100 Special Rebalance Impact On Stock Prices The Nasdaq 100 special rebalance will spur stock allocation shifts among ETFs such as QQQ and mutual funds that track the index. So there could be some one-off gains or losses, perhaps as the planned changes are announced on July 14. However, the impacts may be modest. For one, the big-cap Nasdaq index is going to adjust weightings, vs. a full addition or deletion. Also, far more money tracks the S&P 500, which is why S&P 500 component changes get a lot more attention than Nasdaq 100 moves. The S&P 500 index, unlike the Nasdaq 100, is a pure market-cap weighted index. Most of the "magnificent 7" stocks retreated Monday, then generally rose Tuesday. All climbed Wednesday, especially Nvidia and Meta. Both are up strongly for the week, while Apple stock, Amazon, Tesla, Google and Microsoft are down slightly. The Nasdaq 100 is up 1.8% while the equal-weight QQEW has popped 3.%. https://www.investors.com/news/nasdaq-100-plans-special-rebalance-to-curb-dominance-of-magnificent-seven/#:~:text=The Nasdaq has only conducted,part of the special rebalance.
Thanks that was my thought as well, but i was debating if should take position before the July 24 open. It feels like if everyone expect it to go down it will actually do the opposite. “In the last Nasdaq 100 rebalancing, in April 2011, the downsizing mostly focused on Apple, which then commanded 20% of the index (its weight lately is 12.9%). After the weight reduction a dozen years ago, Apple’s price inched down by just four cents. By year-end 2011, it had soared 19.5%.”
Any selling is going to happen tomorrow and next week, BEFORE the actual shift in weighting. Firms will be ahead of it, not after it. I still think there will be panicky ETF holders who will scream sell sell sell!
% % SELLofF\ monday\ monday,24th\monday before 24th most likely. IF not/ AUG + SEPT have some good sells FNGD maybe more so EDIT, most likely not near as good as main trend/up
Price of the Index will just do whatever it does. I am sure that they are trying to figure it out now, but I think less Apple, Microsoft, Google, Amazon, Meta, Tesla, Amazon. More Crowd Strike, PANW, Cisco, LRCX, MRVL. This is of course all just speculation.