The perfect correlation never exists but if you exclude "Big Tech" and profiteurs of C19 from the majors you can see SPY and co going sideways to down. Good exercise to gain knowledge.
Russell 2000 almost in Bear territory
- Thread starter Millionaire
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This is not growth stocks are weak. We are talking about growth stock bubbles. Look at TSLA and any of Cathie Wood stocks. So you think they should continue to maintain a P/E of 50 or 100?
For the Russell stocks, when market is done, Russell is done. When market rebounds, Russell does not participate. We have the market disconnect.
We sure remember when money was shifting away from big tech to Russell early 2021? This likely going to happen again since we are in endemic now.
QQQE and RSP are good proxies, but a great one has been % of stocks under 200 DMA.
I think you mean Q4 2020?
I do not recall when. But Russell had one heck of run over QQQ in Q1-2021. That was after the Q4-2020 run-up. I was buying TNA at $30 range. Then exited in Q1-2021. I think this is going to happen again. I'll be a buyer of TNA at $58.
Not likely.
Sure what so ever....
OK do it. I just trade price action, all I know is that Russell topped well before QQQ.