Yesterday Nasdaq tech 100 index is very leading than Dow Jones and SP500. If yo guys have an idea about sectoral rotation, perhaps gains in tech index may be indication of markets are about to be bottomed out.. Possible of bottom could be due to drastic fall in commodities (most of em, other than crude). So this is reducing fed's job and already worseing economy could be waiting for a rate cut. Perhaps, markets (especially NDX 100) are factoring in that rates are going to be reduced or reversed sooner.
[ The graph above shows the economic cycle in blue, the stock market cycle in orange and the best performing sectors at the top. The blue economic cycle corresponds to the business cycle shown above. The centerline marks the contraction/expansion threshold for the economy. Notice how the orange market cycle leads the business cycle. ]
Just my opinion.
[ The graph above shows the economic cycle in blue, the stock market cycle in orange and the best performing sectors at the top. The blue economic cycle corresponds to the business cycle shown above. The centerline marks the contraction/expansion threshold for the economy. Notice how the orange market cycle leads the business cycle. ]
Just my opinion.
