$QQQ VS $SPY

I have been leaning heavily on $QQQ over $SPY for a very long time on this blog. It worked.

Here are two charts that offer up some short term and long term perspective of how that ratio is changing right now:

Technology is more pervasive right now so I doubt we see a crash the likes of 2001, but cycles happen and the money that is not leaving the market is rotating (as I have covered in Momentum Monday’s) into housing, commodities, energy, retail and financials.

These charts DO NOT take into account crypto or defi to hot areas of technology investing that I have been writing about here and allocating capital the last few years.

It will be interesting to see if these new hot areas of technology will hold up if the $QQQ vs $SPY trade continues to underperform.

Hopefully this gives everyone some perspective on what has been going on.

So many people this blip down in technology stocks has been brutal, but it is possible that it can get much worse.