We've heard that financials have led this rally too new highs and we need financials to continue to run. It isn't until institutions need to find more yield and start investing in speculative areas such as IPOs and Biotech (this should sound very familiar). This run on financials and SPY
is amazing (scaled left) . Biotech and QQQ/COMP is just as impressive(scaled right). What happened after financials retested new highs and eventually underperforming biotech is what we should all fear most. This is the"dot com era", we shouldn't fear what tech is doing but how biotech has performed. Its about gaining more YIELD and outpeforming the previous year. We won't see a break in this market until biotech breaks. And my next chart is a tell tell sign of were i think we are. The correlation is pretty remarkable and shouldnt be ignored.