As noted before our anticipated A-B-C correction is postponed as the U.S. FED continues to throw dollars at the capital markets with QE causing the U.S. to export food inflation which will likely end with a bubble. The hot commodity space has pushed the Reuters/Jefferies CRB Commodity index above the pre-crisis 2008 peak. Don’t let the hot commodity space distract you from other opportunities out there
Did you know that the Nasdaq 100 index is also trading above the pre-crisis 2008 peak?
This recovery beats the Dow Industrials, the Dow Transports, the S&P500, the TSX Composite and the Russell 2000 and the red hot TSX Small Cap Index. Our monthly chart of the Nasdaq 100 displays the first technology boom & bust of the late 1990’s and now the second or “echo” boom. Note the break up from that huge 2008-2010 inverse Head & Shoulders bottom.
The recovery price target of 2860 is 61.8% retracement of the first boom and bust. That gives us about 20% upside from here – have fun but be nimble