Here is a ratio chart of the Russell 2000 Index etf called IWM and the Nasdaq Composite Index etf called QQQ.
The QQQ returns over the past 7+ years have been extraordinary while the IWM has been stagnant at best and hasn't beaten inflation.
That ratio of performance has just turned in a way that suggests the IWM will outperform the QQQ for the next 11 weeks to the tune of 10%.
The ratio has already moved up last week by 4% of the 10%, so there is only another 6% to go for this signal. If there are any pullbacks of 1%-2%, those would be lower risk entries as the distance to the "stop" level at 0.45 vs 0.4704 last would be less. The target is 0.51 vs 0.4704 last.
So follow this ratio for the next 10 weeks and see if even more relative outperformance happens.
Over the next few years, it is possible for IWM to do 50% better than QQQ.
We would need lower oil prices and lower interest rates and some rational pricing in the big tech names that are over $10 trillion dollars now for 3 companies: NVDA, MSFT and AAPL.
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