Investor Alert

London Markets Close in:

In One Chart Archives | Email alerts

Sept. 26, 2020, 12:00 p.m. EDT

This ‘stunning and shocking’ chart has one Wall Street strategist worried about the stock market’s next move

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    NASDAQ 100 Index (NASDAQ Calculation) (NDX)
  • X
    NASDAQ Composite Index (COMP)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

Shawn Langlois

Some of us are old enough to remember the maniacal buying that pushed tech stocks, many of them long since dead and gone, to nosebleed valuations back in the heady dot-com bubble days of 1999.

Is history repeating itself? Check out this chart, courtesy of Mott Capital’s Michael Kramer, comparing the Nasdaq-100 /zigman2/quotes/210598364/realtime NDX -2.12% back then to the same tech-heavy index today:

“I found this to be stunning and shocking,” Kramer told investors in a blog post . “I hope this turns out to be wrong, by the way.” More than just the chart, the numbers he highlighted this week mirror of the action in 1999 almost exactly.

From the March 2020 coronavirus-induced lows, the Nasdaq-100 jumped 84% over 163 days. Dial it back a couple decades, and the index rose about 86% over 151 days. The reasons for the explosive rally may be vastly different, but the paths are, indeed, strikingly similar.

“I don’t know, maybe it is just chance, but still awfully strange,” Kramer wrote. “I guess we are going to find out soon whether the similarities end there.”

At last check, the trend was continuing in Wednesday’s trading session, with the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -1.99% getting hit hard, as were both the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.09% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.75% .

US : U.S.: Nasdaq
-240.10 -2.12%
Volume: 388,605
Oct. 30, 2020 12:29p
US : U.S.: Nasdaq
-222.20 -1.99%
Volume: 1.57M
Oct. 30, 2020 12:29p
-36.23 -1.09%
Volume: 1.17B
Oct. 30, 2020 12:29p
US : Dow Jones Global
-200.43 -0.75%
Volume: 219.91M
Oct. 30, 2020 12:29p

This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.