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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (1472899)	7/26/2024 5:32:00 PM
From: Rarebird	1 Recommendation Recommended By longz Respond to of 1577191

The rotation from QQQ/SPX into small and mid caps has legs and has just begun. I don't think people realize what a bubble was created among the Magnificent 7. Both AAPL and NVDA by themselves have a greater market cap than IWM. The crowding into the Mega Cap Tech trade is going to take time to unwind, but it will unwind and it will be a sight to behold. AAPL and NVDA each have a greater market cap than most Foreign stock markets. The big question for me is how long will the Rotation last into small and midcaps? My sense is 3-6 months, which takes us into the mid-October/January 2025 timeframe. I expect the conversation to move from inflation to deflation by the end of the year and into 2025. The decline should be swift and a sight to behold. SPX $2900-$3200 is very possible. There is the possibility for one last rally in SPX/QQQ before all this plays out. But make no mistake about this: distribution is taking place among Mega Cap Tech and Semis. And yes, I see long bonds continuing to rally. And yes, rates will be at zero again. As for new highs, once the Megacap tech bubble truly bursts, that is not going to happen even with all the money printing and zero rates. A big counter trend rally, yes, but no new highs, just Stagflation. That's my playbook. For now, I am very long value.