Friends I hope your all having a lovely day. Just wanted to point out the eerily similar structure in the NASDAQ from the 1987 crash to the run up to 1999. The thing I want to primarily highlight is the correction PRIOR to the final leg up in 1999-2000. So this fractal copied IMMEDIATELY before the FINAL BLOW OFF TOP. The structures are IDENTICAL. BUT, not only that, the correction prior to the Final blow off actually had a 30%+ correction, AND retraced to the .382 Fib. Guess what??? Our current correction has fallen the EXACT SAME AMOUNT AND HIT THE EXACT SAME FIB!!! Coincidence??? Maybe. But with Bears everywhere you turn, my gut and the charts are screaming that we have one last melt up before the end of it all and the Crash to best all crashes.
Nice observation. Makes me wonder what a similar comparison would look like if we remove monetary expansion (i.e. divide by M2), or normalize for GDP... just an idea for different ways to look at the NDQ chart.
JTheretohelp1
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@wildhood, great question wildwood. My best guess is that things this go around are stretched beyond with the monetary expansion, whereas the last bubble was based on earnings expansion based on the illusion of profits that never materialized (although monetary policy was still accommodative)
wildhood
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@JTheretohelp1, yeah that makes sense to me too. This fractal does appear to line up well. I appreciate your thoughts and all the work you publish, on Twitter, where I see your work most of the time.