In our last Sunday blog, we mentioned that the NASDAQ would attempt 16000 in the next 4-6 weeks after it bounced sharply from 14200 support. TSLA reported earnings last Monday and the stock price chose not to respond to more than a tenfold increase on the $104 million the company reported in the same period last year.
The NASDAQ bounced sharply from its prior support level around 14200 last week. The dip buying crowd successfully plugged the hole. Now it looks like the NASDAQ will march on to attempt 16000 in the next 4-6 weeks. Underneath the raging indices, there has been a rolling correction since early 2021.
The NASDAQ led the rally post-COVID. It peaked in February 2021. The NASDAQ has been range bound 2/16-6/21/2021. The DOW took leadership (growth to value rotation) from February to May. Now the NASDAQ is breaking out and taking leadership. The week of July 5th remains a key point in time
Imagine at the onset of the pandemic, we didn’t have any of the digital solutions and the entire economy was shut down, what kind of living conditions would have been for all of us? It certainly would feel apocalyptic! Thank goodness to digital companies such as Amazon and Zoom. They allowed us to have a somewhat normal life during the pandemic.
SPAC is a special-purpose acquisition company. Many young companies have gone public via SPACs in a frenzy since 2020. There was a bubble in SPACs for sure. The market has corrected many of the overvalued SPACs rightfully. There will be some SPAC stocks that may not exist in the future because their businesses are not proven.
