What the 10 biggest S&P 500 stocks are screaming right now
My ROAR Score-driven take on the stocks that make up nearly 1/2 the stock market
Did you know that just 5 stocks (NVDA, AAPL, MSFT, GOOG/GOOGL, AMZN) account for 28% of the entire S&P 500 index? Add in the next 20 by company size (“market capitalization”) and you are at 50% of the entire index.
If that sounds normal to you, in a way that won’t matter much, consider this: investors typically know what the S&P 500 index is. It is the most popular gauge of “the stock market.” However, 475 of those 500 stocks make up half the index. Translation: individually, they really don’t count for much, as far as what happens to SPY, VOO, IVV and many other ETFs which exist to track the S&P 500, and allow us to own it in a single trade.
But if we want to know where that index is going, we can get a good proxy by simply looking at the top 10 by weight, which make up about 3/8 of the entire 500-stock index.
That’s what I did this morning, as I watch the market give up another Monday opening burst higher. And, as I continue to watch the risk-managed portfolios I run continue to edge a bit higher much of that time.
These top 10 speak for the market to a large extent. I analyzed their ROAR Scores going all the way back to the start of 2020. Here’s what I found, and why I’m taking it VERY seriously.