Chart of the Day - Tuesday, September 29th, 2020
September 29, 2020
Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). It's a ratio chart of the Nasdaq 100 vs. Long Term Treasury Bonds over the past few ($QQQ/$TLT). When the ratio is rising, as it has been, it means the Nasdaq is outperforming Bonds. Steve points out that this is a logical place for Stocks to reassert their leadership relative to Bonds. In a comment to The Chart Report, Steve told us, "This ratio has already broken out of a multi-year base, and it's currently retesting the breakout level around 1.60. As long as the ratio holds up above that level, you want to be overweight Stocks and underweight Bonds."