Wednesday February 22, 2012
by Christian DeHaemer, editor Wealth DailyRemember the NASDAQ? You may not have noticed, but it's up 133% since the bottom in 2009.
What intrigues me about the NASDAQ is that it is above its resistance level. That's called a breakout — and is very bullish.
The NASDAQ was recently hitting 11-year highs with the next resistance level at 3,497, and yet nobody seems to have noticed.
The fact is there's a blue chip tech stock bull market going on right now — and no one seems to care. One way to profit from this situation is to own the market itself.
The NASDAQ originally stood for National Association of Securities Dealers Automated Quotations.
Now, it's the second biggest stock exchange on earth, and it was the first electronic market. It is also a publicly-traded company called the
NASDAQ OMX Group (
NDAQ).
NDAQ has a forward P/E of 8.44, a PEG ratio of 0.80, and 950,000 insider buys over the last six months. That seems cheap to me.
As a contrarian investor, I love hot markets that aren't getting a lot of attention, because this means there are plenty of Johnny-come-latelies left to buy my stock from me at a much higher value.
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