Tech Stocks Doing Tech Bubble Things

JC Parets
August 2, 2024

We've been here before.

It's been 24 years since we've been here. 

But this is familiar territory

We saw historic underperformance from Technology stocks immediately after the sector reached the same levels it just reached last month.

Should we expect the same? In other words, should Tech keep underperforming, paving the way for other sectors like Financials, Industrials, Energy and Healthcare to outperform for a while?

Is that why the equally-weighted S&P500 just closed the month at new all-time highs? Because the largest weighting of the Market-cap weighted version is struggling to make any progress?

Here's Technology relative to the S&P500 getting back to those former highs from early 2000:

The last time this happened, Tech underperformed for a long time.

What does that mean for broader markets?

During tonight's LIVE Monthly Charts Strategy Session we went over exactly this: What does Tech underperforming mean for the broader markets?

What is happening globally?

Can sector rotation keep this market elevated like we've seen?

Or should we expect massive dispersion among sector returns?

I think it's going to be a combination of both of those things.

Here's what we're seeing and what we're doing about it:

Click here for the replay, slide deck and trade ideas:

We did something special today.

How many people do you know walk you through each of the components of the Dow Jones Transportation Average?

Not only that, but of those who would do that, how many would do that FIRST, and THEN go through the Dow Jones Industrial Average stocks?

I bet not many!

But that's what we did today.

You have to see this. 

I think it's going to change your perspective on the market right now.

Click here to watch the replay.

JC

 

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