Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). It's a custom index that Steve calls the MAGA Index. No, not that MAGA...we're talking about an equally weighted basket of the four largest companies in America; Microsoft, Apple, Google, and Amazon. These four stocks all have market-caps over $1-trillion. Combined, they account for over 30% of the Nasdaq and about 20% of the S&P 500. In a comment to The Chart Report, Steve said, "The recent strength in Small-Caps did a lot to help buoy the broader market over the past few months while Mega-Caps corrected. When these sleeping giants wake up, they tend to lift the major indices higher because of their sheer size. A potential rotation back into these former leaders could be the catalyst for the next leg higher. It may seem like a crime to leave out $FB and $NFLX, but I wanted to isolate the biggest of the big and you'd be surprised at how insignificant $FB and $NFLX are compared to the MAGA names. Why bet against a market when its largest components are just starting to break out like this?"
Chart of the Day - Wednesday, January 20th, 2021
January 20, 2021
