It used to be a welcomed event by companies, but in recent years, being added to the NASDAQ-100 Index (NDX.X) 1,037 +2.18% has been equivalent to when you were a teenager and had to kiss your sibling at the family's holiday get together.
On December 20th, the NASDAQ-100 is due for rebalancing and Salomon Smith Barney is out with its list of potential additions and subtractions as the NASDAQ looks for a new set of favored sons and daughters.
In alphabetical order, one of 2000'S additions Abgenix (NASDAQ:ABGX) $7.61 +1.6% is slated as a potential removal candidate after being added this time last year near the $60 level. The spike in volume upon addition to the NASDAQ-100 gave hint that fund managers were welcoming the liquidity. Bearish traders may want to pay special attention to this years list of "add" candidates that have had overly bullish years that have established some downward trends and look to be rolling over as potential bearish candidates for the new year.
Other stock symbols listed for subtraction on Salomon's list include ADCT, ADRX, AMCC, ATML, CHTR, CNXT, ITWO, IMCL, IDTI, PMCS, PDLI, RATL (recently announced acquisition by IBM now becomes more likely deletion), RFMD, SANM, SEPR and VTSS.
Salomon's list of additions are CECO, CHRW, XRAY, DRYR, EXPD, FAST, FHCC, GRMN, GNTX, HSIC, LAMR, PDCO, PTEN, PETM, PIXR, ROST, WFMI.
One stock on the "list of additions" that may want monitoring is Career Education Corporation (NASDAQ:CECO) $39.52 +1.67% after a recent break below its 200-day and looking like it is rolling over. These technicals don't look all that dissimilar from the aforementioned ABGX of two years ago.
I've just started going through the list of stocks, but found CECO as one to begin studying, and then monitor NASDAQ's decision on December 20th.
Today's market action has been rather quite as the major indexes have inched to their session highs in the afternoon trade. The Dow Industrials (INDU) holds a 60-point session gain and trades back above the psychological 8,500 level at 8,539. The S&P 500 has reclaimed the 900 level at 901.33, while some late session weakness in the Biotechnology Index (BTK.X) 350 -0.19% has the NASDAQ-100 Index (NDX.X) just off its session highs of 1,043 here at 1,037.
Today's FOMC announcement that it would not make any move on interest rates was of little surprise after last month's decision to lower the Fed Funds rate 50 basis points to 1.25%.
Market volume remains light and both the NYSE and NASDAQ have just breached the 1 billion mark.