Liquid Millionaire - isaco

This image is the long-term chart of the Nasdaq Composite (US
Technology Index). The pattern “ cup-with-handle” is named as such
because it resembles the outline of a coffee cup with a handle. Stocks,
funds, sectors, industry groups and indexes can all form this very
positive pattern. It is well known amongst technical investors and
“chartists” as one of the most bullish and dependable chart patterns
around. And many a big upside move has been made off such a
pattern.
And so when you see a major index such as the Nasdaq create such a
formation, especially over a long period of time, it’s time to get excited.
As you will later discover, sometimes, stocks, funds, sectors and indexes
can get ahead of themselves. When they do this (as the Nasdaq did
with the tech bubble in the late nineties and early 2000) they have got to
correct in price–before eventually moving back into higher ground. Th is
is both normal and natural.
From looking at this chart pattern, the Nasdaq is therefore indicating
that it might be setting up for a big move to the upside. Th is would make
a lot of sense. After all, the Nasdaq is the US technology index and you’d
have to have been living in a cave not to notice that right now we are in
the middle of a global information revolution.
And what is exciting about this is that the Nasdaq is still trading way
below the price where it topped out in March 2000. 1 Th e Nasdaq has
made no progress since 2000… but technology certainly has. And that
tells you that sooner or later, the Nasdaq is going to have to play catch
up. Let me explain by giving you some facts and fi gures.
Let’s talk fi rst about the internet. I am sure that you will agree
the internet seems to sit at the core of the information revolution.
According to the UK Statistics Authority, in Great Britain there are
approximately 24.4 million households. In 1999, the year before the
stock market topped out, 16.3% of these 24.4 million had access to
the internet.
But in 2007, 61% of UK households had internet access. 2 Th at’s a 282%
increase in just 8 years. So when people say that the technology boom
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