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Below is a chart and brief excerpt from today’s Market Situation Report written by Tier 1 Alpha. If you’re interested in learning more about the Hedgeye-Tier 1 Alpha partnership, there’s more information here. |
Today, we delve back into a comparison that has garnered significant attention in the past - the Ark ETF versus the Nasdaq spanning from 1998 to 2004, capturing the moments of the Dotcom bubble's collapse. While these comparative charts don't function as crystal balls predicting the Nasdaq's trajectory over the next six months, their correlation remains intriguing.
When talking Ark, we're examining a portfolio primarily composed of Tesla, Roku, Zoom, Coinbase, and Block Inc. While there are other holdings, these carry substantial weight. Notably, Tesla, propelled by its inclusion in the SP500, has become a favorite among the 0dte community.
The re-emergence of the Ark vs. Nasdaq chart today stems from its potential implications: Should this correlation persist, we may witness a weekly lower high in the Nasdaq. Although anecdotal, history often mirrors itself as human behavioral patterns tend to persist. The skepticism surrounding tech in late 2022 has transitioned into a fervor for all things "AI."
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Learn more about the Market Situation Report written by Tier 1 Alpha. |
