let's turn our attention now to a number of big Tech and mega cap stocks that have been soaring this year we've got Yahoo finance Jared blickery to break down the charts for us Jared that's right and let's take a look at some of what's happened this year especially in the mega caps this is the NASDAQ 100 and you can see apple up over 30 so is Microsoft alphabet and Amazon then you take a look at Tesla it's up 51 Nvidia and meta have more than doubled so what has been going on this is the mirror image of what we saw last year when Tech got obliterated we saw energy soaring well it comes down to Market concentration actually over the last couple weeks there have been price Cuts fed price Cuts price or excuse me Hike Fed rate Cuts priced out of the market so the market is no longer expecting a hard Landing it's expecting more of a soft landing and in this environment it's thought that the mega caps will do a little bit better than other things now this is a NASDAQ 100 versus the NASDAQ Composite going back about 30 years and what's stands out are a couple things first of all the chart is from the lower left to the upper right this means that over time the NASDAQ 100 has been gaining over the NASDAQ Composite which has about 3 000 issues there are a number of reasons for this and part of it has to do with Market superstructure we don't have time to get into but nevertheless the trend is already up secondly we can see within this band we kind of go within a range here right now we are at the upper end of this band meaning that there are NASDAQ 100 is more in favor than it would have been otherwise at the bottom here when you had the NASDAQ Composite more in favor but look at this this move here stands in stark contrast to what happened in the.com bubble in Crash that was a huge outperformance by the NASDAQ 100 there in just a handful of names like Cisco Oracle Intel some of them we know Yahoo was one of them back in the day even Worldcom which ended up being a fraud but nevertheless once that was cleared we kind of settled back into a rain chair so so I just want to show what's possible we are nowhere near yet back in bubble territory and probably a little bit early for that anyway I do want to show you what's going on also now that the FED has paused now historically when the FED pauses that does give the market a little bit of impetus to keep rising and it's a little bit not intuitive here is the NASDAQ 100 going back 20 years and the FED paused in 2006 and mid-2006 and then from that time forward into the global financial crisis stocks actually Rose into the time that the FED made their first cut which is somewhat not intuitive you would think cutting well that's going to actually help the markets out but I'll tell you what guys it was a signal that there was a hard Landing to come so that was actually the beginning of the end there so suffice to say now that the FED is on pause stocks could easily rally as long as the FED remains on pause will that be a month two months three months six months a year I just want to point out that these things tend to run long longer than we normally think about so this could be a three-year cycle of which we're maybe only in the first half of right now interesting to get that historical perspective Jared blickery as always thanks so much for that
