Late Sunday night random thoughts:
1) QQQQs topped out late in Oct 2007 that led to a thunderous crash, we are in the same Oct time frame 3 yrs later after a parabolic one month ramp (chart on the left).
2) BAC leading the big banks by breaking to a 2010 low on huge volume(chart on the right). Can the market continue to rally without the banks? How will all the new QE II dollars find its way into the economy without a strong banking system?
3) Shanghai Composite Index rallying 10+% in 2 weeks. The factories that survived the 2008 financial crisis are prospering again with strong order backlog. Is this a breakout or a bear market rally?
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