| | | | Gold Squeeze?
First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter.
Gold is pushing higher, no doubt about it. But is there more to this move than meets the eye?
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Market Concentration Warning: 11 Companies Control 59% of Nasdaq Gains Since 2019
Something's been nagging at me for weeks, and after digging into the numbers, I understand why my gut’s been telling me to be cautious.
The data I've been analyzing shows an alarming reality about our current market structure — one that most investors aren't paying nearly enough attention to. Just 11 companies have been responsible for 59% of all Nasdaq market cap gains since 2019.
Think about that for a moment...
We're talking about thousands of companies listed on the Nasdaq, yet a tiny handful — you could fit them around a conference table — have driven the majority of gains. The remaining companies have only contributed 41% of the total gains.
Here's the thing that really caught my attention: This represents roughly $27 trillion in market cap. That's not a typo. We're looking at an unprecedented concentration of market power.
And it's not just a Nasdaq phenomenon. This extreme concentration is pretty much in line with what we're seeing in the S&P 500 too.
Why This Level of Concentration Should Concern You
Look, I'm not saying the sky is falling, but when the entire market's health depends on such a narrow group of companies, we've got a fragility problem that most people aren't recognizing.
This isn't normal market behavior. In healthy bull markets, you typically see broader participation — more companies contributing to the overall gains. What we're seeing now is the opposite: extreme dependence on a handful of mega-cap names.
The mathematics are simple but sobering. If these 11 companies hit a rough patch — whether from regulatory pressure, earnings disappointments, or simply profit-taking — the ripple effects across the entire market could be severe.
How Smart Traders Should Position Themselves
This data doesn't mean you should panic-sell everything, but it does suggest some practical adjustments to your approach:
First, recognize that traditional diversification might not be providing the protection you think it is. If you own multiple index funds or ETFs, you're still heavily exposed to these same 11 companies.
Second, consider reducing position sizes in the mega-cap names that have run up the most. The risk-reward profile has shifted significantly when concentration reaches these levels.
Third, look for opportunities in smaller, quality companies that haven't participated in this concentrated rally. When the market eventually broadens out — and history suggests it will — these names could offer better upside potential.
The bottom line is this: when 11 companies control 59% of market gains, we're in uncharted territory. That level of concentration creates both opportunity and risk. The smart money is preparing for both scenarios.
Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!
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