The Gilmo Report

June 10, 2020

June 10, 2020 7:30 pm ET

The NASDAQ Composite Index cleared the 10,000 level for the first time in history, building on what has been a somewhat surreal but still playable market rally off the March lows. What this market has done is prove out my alt-currency rally theory where infinite QE turns stocks into alternative stores of value.

 

 

While the index cleared to all-time highs the action did show some high-volume churning thanks to today’s Fed meeting. Breadth was negative on the NASDAQ, providing a stark divergence to the continued upside streaks in big-stock alt-currency names.

In the alt-currency environment the market is led higher by the alt-currency generals, so to speak, which today consist of primarily the Fantastic Five, Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOG), Facebook (FB), and Microsoft (MSFT). There are other players, of course, but there is a reason why these five take up nearly one-quarter weighting in the S&P 500 Index.

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