Indicators Still Pointing To All-Time Highs For Stocks
It is so fascinating that while the stock market has basically gone sideways this year, sentiment continues to become more negative. The S&P 500 remains one big up day from all-time highs although many people act like it’s down 5-9%.
The Russell 2000 is also close to the old highs although I do not believe investors have big positions here.
And let’s look at the number of stocks making new, 52-week lows on the NYSE. The number is scraping along well below 100. That is not the behavior typically seen at the end of bull markets or right before a large decline.
So what do I think?
I think investors remain overloaded with a few stocks best represented by the ETF below which is down, wait for it, 10%.
The broad stock market behaves very well. The rally has broadened. Leadership is great! Just look at the semiconductors below. Bear markets and large declines do not begin with semis making new highs.
Big weekend ahead. Ma’ Nature snowed on my parade to take my wife on a surprise overnight last weekend. This weekend, we will try again, but for a different milestone birthday surprise that begins in eastern CT and ends at the final home game for the UCONN men tomorrow. And then we will part ways, me to Vermont, Teri to home.
With Saturday being the last day of February, the calendar turns, not to March as is conventionally thought, but to the month of UCONN where basketball post-season begins. Let’s go Huskies!
On Wednesday we bought more IYR, JPM and SPHB. We sold some TQQQ and some MRK. On Thursday we bought FSEP and more QSPT. We sold BSEP, FMAY, FJUL, FAUG and some TQQQ.
