Nasdaq (Nasdaq-100 ETF: QQQ) was a strong leader prior to topping out on March 9, 2000. This is very similar to today’s market with about 100% gains from February 2020 to February 2021
Dow (ETF: DIA) and S&P (ETF: SPY) lagged behind Nasdaq during the Nasdaq rally
When Nasdaq reversed from the top to its first stage, Dow and S&P were still near the record-high area.
Three-day rebound (04/05/2000-04/07/2000), which mapped to today’s condition, was to prepare the next sell-off wave
Then, it was another 5-day strong selling (04/10/2000-04/14/2000). Notice Dow and S&P performed well during that time. It made sense to see money rotation from red-hot technology or bubble to safer stocks like financial, industrial, energy, material. Does it sound similar when you compare Tesla (TSLA) with JP-Morgan (JPM) today?
The rest story is straightforward to see bull gave its position to bears in the next 12-15 months that Nasdaq lost -80% and Dow was down -40%.
Dow (ETF: DIA) and S&P (ETF: SPY) lagged behind Nasdaq during the Nasdaq rally
When Nasdaq reversed from the top to its first stage, Dow and S&P were still near the record-high area.
Three-day rebound (04/05/2000-04/07/2000), which mapped to today’s condition, was to prepare the next sell-off wave
Then, it was another 5-day strong selling (04/10/2000-04/14/2000). Notice Dow and S&P performed well during that time. It made sense to see money rotation from red-hot technology or bubble to safer stocks like financial, industrial, energy, material. Does it sound similar when you compare Tesla (TSLA) with JP-Morgan (JPM) today?
The rest story is straightforward to see bull gave its position to bears in the next 12-15 months that Nasdaq lost -80% and Dow was down -40%.