Changing Market Leadership: What’s Happening?

[] Is the Dow Taking Over the Lead from Tech Stocks？ [] [] [] [] Yesterday, I talked about this week’s volatility, with natural gas prices rising and inflation data on the horizon. But there's another interesting shift happening in the markets right now: the changing leadership between major indexes. For a long time, the NASDAQ (QQQ) was the clear leader, outpacing both the S&P 500 (SPY) and the Dow Jones Industrial Average (DIA). But in this latest run, since about mid-July, we’ve been seeing something different. The Dow has been showing more strength, while the NASDAQ is lagging behind. Not only did the Dow drop the least of the 3 indexes — about 7% as compared to nearly 10% for the SPY and 16% for the QQQ… But the QQQ reached its peak on July 10th — while the Dow didn’t hit its peak until July 18th. What does this mean for us as traders? Well, it could signal a shift in where the market is putting its confidence. Historically, when the NASDAQ leads, it’s a sign of a risk-on environment — investors are hungry for tech growth stocks. But now, with the Dow showing strength, the market may be gravitating toward more stable, blue-chip names. This doesn’t mean tech is out, but it’s something to watch. Leadership shifts like this could tell us a lot about where the market is heading, especially in times of uncertainty. And we’ve got plenty of that with the upcoming election and geopolitical turmoil. If this trend continues, it might be time to start thinking more defensively and looking more seriously at opportunities outside of tech. Let’s keep an eye on how this unfolds over the coming weeks. — Geof Smith P.S. One thing I focus on — no matter what the market is going — is targeting weekly income from one of the most stable commodities in the market. [Click here to see what I’m talking about.]( [] [] Yesterday, I talked about this week’s volatility, with natural gas prices rising and inflation data on the horizon. But there's another interesting shift happening in the markets right now: the changing leadership between major indexes. For a long time, the NASDAQ (QQQ) was the clear leader, outpacing both the S&P 500 (SPY) and the Dow Jones Industrial Average (DIA). But in this latest run, since about mid-July, we’ve been seeing something different. The Dow has been showing more strength, while the NASDAQ is lagging behind. Not only did the Dow drop the least of the 3 indexes — about 7% as compared to nearly 10% for the SPY and 16% for the QQQ… But the QQQ reached its peak on July 10th — while the Dow didn’t hit its peak until July 18th. What does this mean for us as traders? Well, it could signal a shift in where the market is putting its confidence. Historically, when the NASDAQ leads, it’s a sign of a risk-on environment — investors are hungry for tech growth stocks. But now, with the Dow showing strength, the market may be gravitating toward more stable, blue-chip names. This doesn’t mean tech is out, but it’s something to watch. Leadership shifts like this could tell us a lot about where the market is heading, especially in times of uncertainty. And we’ve got plenty of that with the upcoming election and geopolitical turmoil. If this trend continues, it might be time to start thinking more defensively and looking more seriously at opportunities outside of tech. Let’s keep an eye on how this unfolds over the coming weeks. — Geof Smith P.S. One thing I focus on — no matter what the market is going — is targeting weekly income from one of the most stable commodities in the market. [Click here to see what I’m talking about.]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](