Is the NASDAQ Overbought?
- May 10, 2016
Here’s my first trading post. View the above chart on the full screen mode – then it’ll make sense.
I remind you that this is for educational purposes only and is not trading advice.
My feeling is that the US markets are overbought, especially the NASDAQ. Check out the below chart outlining the recovery after the global financial crisis. The indices shown are, from top left to bottom right, QQQC – NASDAQ China (Chinese Tech Stocks ETF), DZ1! – TECDAX (Germany Tech Stocks ETF), JPN225 – the Nikkei 225, QQQ – NASDAQ Powershares, GWL – S&P World Equities excluding the US, and UK100.
Again, I recommend you view this on fullscreen mode.
Doesn’t take a genius to see that the QQQ (NASDAQ Powershares) has had an awesome rally – but we are seeing some topping patterns. Today, we’re getting a small rebound however I think ultimately, when the time comes for a correction, the NASDAQ will be hit the biggest. Why? Because the bottom line – valuation is out of control: Wall Street values Tesla Motors at $620,000 per car