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December 13, 2005
NDX Adds Google, The General Leads and Pfizer Surges
The Nasdaq 100 finally has Google (GOOG). The Nasdaq announced 11 new additions to the Nasdaq 100 and 11 deletions. The additions are not that surprising, but I was a bit surprised to see Novellus (NVLS) drop from the list.
New additions to the Nasdaq 100 and QQQQ
ACTIVISION-ATVI
CADENCE DESIGN-CDNS
CHECKFREE-CKFR
DISCOVERY HLDG-DISCA
EXPEDIA-EXPE
GOOGLE-GOOG
MONSTER-MNST
NII HOLDING-NIHD
NVIDIA-NVDA
PATTERSON UTI-PTEN
RED HAT-RHAT
URBAN OUTFITTER-URBN
Removed from the Nasdaq 100
CAREER EDUCATION-CECO
DOLLAR TREE-DLTR
INTERSIL-ISIL
INVITROGEN-IVGN
LEVEL 3 COMM-LVLT
MILLENIUM PHARMA-MLNM
MOLEX-MOLX
NOVELLUS-NVLS
QLOGIC-QLGC
SANMINA-SANM
SYNOPSYS-SNPS
SMURFIT-STONE-SSCC
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Google (GOOG) is a true powerhouse and deserves to be in the Nasdaq 100. I would imagine that this stock went on the fast track as the Nasdaq 100 could ill-afford to leave this high flyer out. The stock is in a clear uptrend, but also overbought as it moved above the upper channel trendline. This is not a bearish forecast, but should serve as an alert to longs to prepare for a consolidation or even a correction.
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Pfizer is up big today on big volume. This is still a bottom pickers play, but the stock formed a harami on Monday and then gapped higher on Tuesday. This confirms the harami. The stock is poised to form a long white candlestick and the high volume move solidifies support from the October and December lows.
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For clues on the large-caps, I am watching General Electric (GE). The stock broke resistance with a big gap in November and then corrected over the last few weeks. Volume on the correction was unusually high and the stock is firming around 35.2. A break above 36.2 would signal a continuation higher and be bullish for the large-cap dominated indices (OEX, SPX).
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Posted by Arthur B. Hill at December 13, 2005 03:15 PM