QQQ: Imminent Tech Smack Down!
Tech has been on a tare, proceeded by a rip. QQQ has gone up further than I anticipated but the market is finally showing
serious signs of exhaustion. The outrageous valuations and proclamations of a new bull market are sure fire signs of the'
end of the road. It has touched the .618 fib level and depending on how you are looking at it, even surpassed it by a bit.
Looks awfully similar to the dot com bubble. The Nasdaq fell by almost 50% before retracing over 60%, arriving slightly
above the .618 fib and then resumed its downtrend, falling another 80% from its retracement high. The market also rings
of the 1973 bear market where only a few stocks were carrying the entire market before a significant downtrend and they
never quite recovered in the same way. History points to several scenarios that all shine a light on the unusual market
behaviour and what we might expect moving forward. Many are calling for a new bull market and saying that "this time
is different." That is one phrase that you want to avoid at all costs when referencing the stock market because it always
finds a way of delivering the same results, sometimes taking more time to play out or allowing those that refuse to accept
the reality of what is to come to gloat in a the,mporay victory over those more observant and subsequently cautious investors.
I think that it will not be much longer before we see a profound shift in the market and all of the indications of economic illness
are validated by price action.
serious signs of exhaustion. The outrageous valuations and proclamations of a new bull market are sure fire signs of the'
end of the road. It has touched the .618 fib level and depending on how you are looking at it, even surpassed it by a bit.
Looks awfully similar to the dot com bubble. The Nasdaq fell by almost 50% before retracing over 60%, arriving slightly
above the .618 fib and then resumed its downtrend, falling another 80% from its retracement high. The market also rings
of the 1973 bear market where only a few stocks were carrying the entire market before a significant downtrend and they
never quite recovered in the same way. History points to several scenarios that all shine a light on the unusual market
behaviour and what we might expect moving forward. Many are calling for a new bull market and saying that "this time
is different." That is one phrase that you want to avoid at all costs when referencing the stock market because it always
finds a way of delivering the same results, sometimes taking more time to play out or allowing those that refuse to accept
the reality of what is to come to gloat in a the,mporay victory over those more observant and subsequently cautious investors.
I think that it will not be much longer before we see a profound shift in the market and all of the indications of economic illness
are validated by price action.
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