NQ at the daily view.
The solid colored lines came from the Dotcom Bubble's trend lines or channel... whatever you call it. This was why I was amazed how well the lines from 2000 correlated to today. It's mind boggling.
NQ was obviously way over extended. However, it's foolish to short the NQ and time a top. The tech sector is infamous to completely ignore P/E ratio and most trading rules.
Why does it apply to today? Well, it's a combination of FOMO and TINA (There Is No Alternative). Bond rates are low. Saving rates are low and increased inflation eats up the purchasing power. Real estate is very expensive nowadays. To the average person, where do they park their money? Well, the only obvious place left is the stock market. Big tech is viewed by the average person as some sort of "safe haven" for their cash... which is ironic actually.
Still waiting this correction to be over so I can buy the future bounce. As you may see, we are no where near the bottom of the channel. Will it be a collapse? Highly unlikely. Internal data doesn't support a collapse. Since the upward channel is intact, the trend is still up.
The solid colored lines came from the Dotcom Bubble's trend lines or channel... whatever you call it. This was why I was amazed how well the lines from 2000 correlated to today. It's mind boggling.
NQ was obviously way over extended. However, it's foolish to short the NQ and time a top. The tech sector is infamous to completely ignore P/E ratio and most trading rules.
Why does it apply to today? Well, it's a combination of FOMO and TINA (There Is No Alternative). Bond rates are low. Saving rates are low and increased inflation eats up the purchasing power. Real estate is very expensive nowadays. To the average person, where do they park their money? Well, the only obvious place left is the stock market. Big tech is viewed by the average person as some sort of "safe haven" for their cash... which is ironic actually.
Still waiting this correction to be over so I can buy the future bounce. As you may see, we are no where near the bottom of the channel. Will it be a collapse? Highly unlikely. Internal data doesn't support a collapse. Since the upward channel is intact, the trend is still up.