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Most traders and investors don't realize that the U.S. stock market is capitalization-weighted.
That means names with bigger market caps carry greater percentage weights in the index, and vice versa for stocks with smaller market caps.
So despite the fact that the S&P 500 and Nasdaq 100 are home to 500 and 100 stocks, respectively, the bigger a stock is, the more voting power or control it has over the broader market. That's why it's important for us to watch both market internals and externals....
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| Is It Time to Move Back Into Solar Energy and EV Stocks?
| June 16, 2021
| Members of my VIP Trade Room have been asking me over the past few sessions or so if it's time for us to move back into solar energy and EV stocks.
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| | | How to Play This Pairs Trade for a Triple-Digit Gain
| June 14, 2021
| Those who know me know that pairs trading is my love language — it's how smart investors make money off the stock market no matter if it's up or down.
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