Zeev, I would hardly call this 83% drop in the NDX over 2-1/2 years being brought back to standard on the time scale you are thinking of.
They've let it slide 83% already. Where is that safety net?
If there is one, it got tangled up with the anchor and is at the bottom of the ocean.
I am not talking economics here. I'm also talking market valuation correction.
Just because the Nasdaq corrected from 5100 to 1200 does not mean we should be close to a depression. Did 1966-1982 correct 83% in 2-1/2 years? No. Did 1929-1932? Pretty close to it. Why is that invalid?
As for last September, I only remember WP as one who was talking about lower lows after Sept. 21 (Steve Lee also owned up to that too, I guess). Mostly I recall frenzied buying of the bottom.
Once a bubble gets pretty deflated, it loses its ability to bounce. Half full, you can still bounce a ball. Once it gets close to flat, it doesn't bounce very well. That's an over-simplification, but it illustrates my point pretty well.
Being of great mind, I think you might agree a good analogy would be "it's the physics, stupid."
BTW, if that decline going into July 24 had all the makings of a great bottom, why did the NDX make a new lower low yesterday? That's a failed re-test in this market, pointing to lower lows on the COMP by the pattern of divergences in the COMP and NDX (remember May when the NDX breached the Sept. lows and the COMP had not yet, and remember what happened later?)
The reason is because the bottom is not in, and this bottom will not hold long.
AI
