We are Getting Closer to Lift-OFF…

This week we are seeing many stock patterns falling into place, majority on the bullish side, just in different stages as the lift-off level approaches.

The most encouraging aspect, the really strong pattern stocks are still not being talked about on CNBC. Our model emphasizes the economic growth stocks. Fangs and AI were the early base, they are now playing a secondary role.

Back on November 5, 2023 we talked about the Russell / Nasdaq 100 ratio as something to watch for indications of when the real (broad) Bull Market would be starting.

Here is what we said then:

“I remained focused on the Russell 2000 vs Nasdaq 100 to tell me when investors start believing in growth. To do that I watch the RUT/NDX relationship. Last week it was low at 0.1134. The 0.1173 level would indicate that a bottom has been made with 0.1224 and 0.1328 being the first two indications of liftoff. Chart closed at 0.1166 on Friday.”

At this moment, 2:40 PM on 12/19/23 we are 0.1205, so we have crossed the first important level at 0.1173 on Dec 4th, with the second level 0.1224 in sight.

Here is the chart.