Yeah the QQQ chart can only be categorized as parabolic. Amazingly the PE of the QQQ is still only 35. Imagine if it went to 100 like in 1999. That means these NASDAQ companies are making more and more of the earnings pie which doesn't bode well for the economy. There's still 4-5 million jobs missing from March 2020 so that means companies have basically pocketed that cost savings. I can't imagine it well end well.
I hope so! I am so reluctant to enter here before the holiday weekend. Especially the NQ. WTF is going on with it? We need a decent dip!
It's not parabolic at all, but idiots can post a chart with a really narrow X-axis and pretend it is. YTD +23% is not an unusual return and it's backed up by earnings growth and GDP +6.4%. Still plenty of stocks that are cheap some with single digit P/Es. Buy them if you don't want to buy high growth stocks.
The chart is definitely exhibiting behavior it has never exhibited before. Parabolas, logarithmic, whatever. You have to admit that it is "zooming north" at an increasingly-accelerated rate. That much cannot be denied. What it portends? Nobody can know. And the X-axis must always be combined with the y-axis. That is the scary-bit. The Y.
Am expecting a blowoff top scenario culminating around mid Sep into FOMC ~ leading to a 15 - 20% pullback. Think we go higher in the front end of the month though unless tomorrow is some ungodly down day to screw up Weekly / Monthly charts. Would change things a bit. Then I plan to buy with both fists (more like average down - index ETFs / stocks... not index futures). Futs will give more than ample opportunity with the violent swings in both directions.
The crummy thing is...A year ago, a 20% drop in the SP was what, ~600 points?. Today it would be 900 points. Big-ass difference.