It’s not a secret that Chinese Tech stocks have been breaking out all over the place to new all-time highs. We’ve been on this for a while. I remember specifically in the depths of the market crash in March last year, Chinese Technology was actually breaking out to new multi-year highs relative to the S&P500. This was happening during the worst part of the crash!
I remember thinking, “What the heck???”
And so they’ve been ripping ever since. But the market had already tipped its hand.
The difference today is that we’re now seeing signs of structural outperformance. It’s now Chinese Technology leading the way here bigger picture, no longer U.S. Tech.
Here’s the Chinese Tech Index Fund $CQQQ breaking out of a mulit-month base to new all-time highs. You’ll also notice how it’s breaking out relative to the U.S. $QQQ representing the Nasdaq100 Index: [Read more…]