In a recent update from the Nasdaq 100 Index (QQQ) and its related exchange traded funds (ETFS), a number of new bullish trends in the communication services (XLC) and transportation (IYT) sectors have been noted.
Analysts have identified changes in the composition of the QQQ and the movement of stocks within the index as a result of this new bullishness. Specifically, the recently added communication services sub-sector has gone from 6.13% to 8.78%, indicating just how important this sector has become for the index. On the other hand, the transportation sub-sector has seen a much smaller increase, going from 13.69% to 14.71%.
Additionally, a number of stocks have changed significantly in their weighting within the index as well as in their price appreciation over the past few weeks. This can be accounted for by the fact that communication services stocks are outperforming their peers in the transportation sector, leading to increased allocational changes.
These changes are a testament to the growing importance of the communication services sector, which has been at the forefront of the communications revolution that has been ongoing for some time. This has led to the emergence of new companies and products within this sector, which has only further emphasized its value and relevance. As investors worldwide continue to focus their attention on streaming and other media-based services, this sector is expected to continue to grow substantially in the near future.
Overall, the changes in the composition of the Nasdaq 100 Index (QQQ) suggest a bullish trend for both the communication services (XLC) and transportation (IYT) sectors. This could be a good opportunity for those investors looking to get involved in these markets, as the current trend could potentially lead to above-average returns in the months to come. As always, though, investors should remember to conduct their own due diligence before making any investment decisions.
