After Trump's election, there's been a lot of talk about the relative strength of small-cap stocks (IWM) compared to tech stocks (QQQ). To be honest, the price action does look somewhat interesting, but this trading pair has an old problem — every few years it conjures up an illusion of "bottoming out," only to end up trapped in a long-term downtrend channel. Personally, I'm quite looking forward to the day when the market starts crazily chasing QQQ again. When that happens, the story might flip the other way around.
After Trump's election, there's been a lot of talk about the relative strength of small-cap stocks (IWM) compared to tech stocks (QQQ). To be honest, the price action does look somewhat interesting, but this trading pair has an old problem — every few years it conjures up an illusion of "bottoming out," only to end up trapped in a long-term downtrend channel. Personally, I'm quite looking forward to the day when the market starts crazily chasing QQQ again. When that happens, the story might flip the other way around.