TECHTONIC SHIFT ?
- One of the reasons for the report is the amount of chatter of how people want to participate in the Nasdaq , Chinese and US Tech Stocks due to the sharp fall in many Tech Stocks.
- Does it make sense to be buying the Dip, Sipping in the DIP, Lump Sum ? ( Do not go to the Conclusion Page )
- Lets try to look at that answer from a Technical Perspective with long term charts.
Back in 2000’s in the Tech Bubble – NASDAQ had a big outperformance over DJIA, which followed by a severe underperformance over a long period of time
In the below note we have covered few charts
- DJIA vs Nasdaq – Nasdaq’s Outperformance over DJIA in 2000, followed by the Big Fall
- DJIA vs Nasdaq – The fall of 2008
- DJIA vs Nasdaq – How many years it took for both to hit new All time highs
- DJIA vs Nasdaq – Rise of Nasdaq – Outperformance again
- DJIA vs Nasdaq – Outperformance continued in 2020 and Nasdaq topping out in 2022
- Ratio Chart – DJIA to Nasdaq – What happened in 2000
- Ratio Chart – DJIA to Nasdaq – Will the history repeat in 2022?
- Few stock charts – 2000 crash and 2022 crash – Strikingly similar?
Looking at all the charts, one should ask whether the current move in Nasdaq is similar to that of 2000 and will Nasdaq – the bellwether index will underperform DJIA going forward?
In the most recent leg, DJIA has shown some signs of decoupling with Nasdaq.
Will the IT sector (Led by accelerated digitization post covid) take a pause and will the old economy stocks show their mojo once again?
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