Party Like it’s 1999?

• Posted by Robert Sinn
• on March 27th, 2012

The NASDAQ-100 ($QQQ) is on track to post its 13th consecutive weekly gain and people have begun comparing the current rally with 1999, let’s take a look:

 

The QQQ began trading in late 1998 and you can see that the tech bubble really ignited in October 1999 – in a span of five months the NASDAQ doubled. Although the magnitude of the 1999 move makes the current rally appear tame by comparison, not even during the tech bubble could the QQQ manage to post 13 consecutive weekly gains (the streak ended at 11). Let’s take a look at the NASDAQ Composite from the same period:

 

Once again the magnitude and velocity of the ascent is breathtaking, however, the $COMPQ could *only* manage to post 11 consecutive weekly gains as it turned skyward in December 1999. Now let’s have a look at the current streak of 12 consecutive weekly gains which appears to be on track for a 13th week after yesterday’s monster rally:

 

A stunning 26% rally from the December low but there have been a couple of sub-.50% weekly gains during the rally which have served to cool off some of the overbought indicators along the way. While the current rally shares few things in common with late 1999, by my estimation it is just as impressive given its unforeseen nature and the fundamental backdrop from which it began.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus