Here is my wave analysis for QQQ. It looks like we could make it all the way to 400 before a serious pullback. Is it really wave 5 we are on? Would the pull back be really big? Seems hard to believe, but just maybe. This massive tech surge will need to end some day, why not after this crazy COVID rally.
Not only is there a big fib level around 400, but one of the rules that read for Elliott waves is wave 5 is 61% of wave 1-3. Thus, 1.618 works out to exactly 400.
One thing that I would like to point out that tech has for the most part always made higher lows during pullbacks. It is quite amazing if you look at it. Also, the scale at which QQQ outperforms SPY is on the order of 2X-3X. DIA is a joke compared to QQQ. Even when QQQ has a major pullback, tech always seems to recover relatively quickly. If it was not for the dot com bubble, I get the felling that an investor should just keep plowing money into QQQ (tech) and you will always win, and win big in the long term. I wish I would have known the scale of this for QQQ compared to other indices over the last decade. I could have retired by know. Will that continue when the government pulls back on QE, I don't know. The government has wildly distorted the market with all of its manipulation and stimulus, but my guess even if tech where to take a big hit, it would just bounce back.
Not only is there a big fib level around 400, but one of the rules that read for Elliott waves is wave 5 is 61% of wave 1-3. Thus, 1.618 works out to exactly 400.
One thing that I would like to point out that tech has for the most part always made higher lows during pullbacks. It is quite amazing if you look at it. Also, the scale at which QQQ outperforms SPY is on the order of 2X-3X. DIA is a joke compared to QQQ. Even when QQQ has a major pullback, tech always seems to recover relatively quickly. If it was not for the dot com bubble, I get the felling that an investor should just keep plowing money into QQQ (tech) and you will always win, and win big in the long term. I wish I would have known the scale of this for QQQ compared to other indices over the last decade. I could have retired by know. Will that continue when the government pulls back on QE, I don't know. The government has wildly distorted the market with all of its manipulation and stimulus, but my guess even if tech where to take a big hit, it would just bounce back.
