SP500 vs NQ Transition Commences
Just wanted to toss a quick note out there, we are working on a more extensive technical letter coming out later tonight, but for now, just this short post. What is obvious to us is we are witnessing some profit taking and tax positioning early on here. What remains to be seen is whether or not this is going to be a protracted underperformance of the Nasdaq vs the broader market or if its just “transitory.” We posted this chart a few weeks back and we continue to see outperformance by the SP500. Now if you don’t know where something’s been, how can you tell where it is going??? Well in this case, let’s just say the SP500 has plenty of room to run and the concentration in the tech heavy Nasdaq, well let’s just say egregious! Here is the chart and we will use any short term outperformance of NQ to dip the toes in this spread and favor the SP500 for now:
Till tonight, where we will have a heavy technical chart book to review! Stay thirsty my friends.
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