From it’s peak and to the low NASDAQ has seen about 23% corrections in about 3 months.
Last time we experienced something similar was back in late 2015, that was when the NASDAQ retested the highs of 2000 the “dot.com bubble” level–globally, fundamentally and technically, it was indeed very vulnerable situation back in 2015-2016. But market shrugged off its implications and thrived gaining more than 120% in 3 years.
Who do you think was able to ride that up and profited from that 120% move?
Crash callers? No. Cash people? No. Day traders? No. Scalpers? No. 90-95% retails traders and investors were not able to participate in it because they were too scared. That’s how rich gets richer and poor gets poorer, not only in the world but in the stock market always expecting the worst.
As my members and followers know, that I’ve have been fully invested in the stock market since the early 2016 while the whole world was chanting for a global market meltdown. This is the first time we are seeing the opportunity here similar to 2016.
My Jan-2016 Analysis: “The Bull’s Fight For A Major Reversal“
Last time we saw more than 20% corrections on the S&P 500 was back in 2011; and we all know what happened after that; we got into the “most hated bull market.” Why was it the “most hated” because the “most” ain’t participating in the move. Funny, 2019 today, after 8 years later, same people are still waiting for the crash (bear market / recession).
I remember the psychological sentiment of 2011, how dire it was people calling for 600 on the S&P (to make this in perspective S&P 500 is now trading at 2,500 today)–crazy right? People don’t change and the market’s tactic to impute fear is no different today. Many people will miss out on the huge run we are about to have in 2019 – 2021.
Above is monthly-chart of QQQ.
Market broke out of the “20-Year Base” in 2017, and now retesting the rising-pivot (from 2010 highs) and the uptrend support (from 2015 lows). I believe this is the major bottom, and the market is preparing for a huge run that could last at least few years.
