This chart of the Nasdaq Composite is technically picture perfect. The only real problem is that the gains are getting more narrow as this rally progresses. That’s not to say it won’t test the recent highs near 2880. It may just, but getting through shouldn’t be easy.
As you know, I’ve been comparing this year to last year and the similarities are remarkable. The only major difference is that last year everyone just knew that we had to crash when the summer ended. After all, we were clinging to support and the economy was toast without QE. This year we levitate 25% higher but everyone just knows that there must be more QE to keep the markets stimulated. Therefore we continue to hover near post crash highs.
Considering how short-term and one-way markets function nowadays, the action is not too terribly surprising. But we all know how the overwhelming consensus gets it wrong…
My chart still says Buy Buy Buy until the end of July*
Scott, do you still favour UMC at this price?
What about that chart is not bullish? The consensus is always eventually wrong, but they always have a lot of pain before being proven correct. And that is why money is hard to make in the market.
I have the Qs near making a high that hasn’t been seen since Feb. of this year. Who knows for sure, but this is the 4th time the Qs have challenged this level. If it breaks through, look out.