Growth Versus Value:
Ad nauseam. We keep hearing about this relationship and no question it has been value in charge as seen on the WEEKLY ratio chart below comparing the Nasdaq to the S&P 500. I like to remind folks that the Nasdaq between 2019-2021 advanced by a combined 100%. This year of course it is giving some back to the tune of 30%, and that is to be expected after that run-up. It does not mean there will not be intermittent bounces higher along the way. And we could be nearing a long-term bottom as well. No one knows and no one catches the bottom. Only liars do. But with a haircut of one-third off the Nasdaq, it makes some sense to at least take a look for some tactical purchases. The WEEKLY chart below of the Nasdaq suggests a possible bounce as well with support, at least so far, at the 200-day SMA. The tech-heavy benchmark is lower 9 of the last 10 weeks and a rare WEEKLY gap down occurred this week. The last time I witnessed that was the week ending 2/28/20, which occurred near the very round 10000 number from the week before. Buckle up but I think the next 5% is higher.