S&Ps internal strength
2 responses | 0 likes
Started by joj - Aug. 4, 2018, 7:32 a.m.

I've been looking for a top in stocks this year.  Not for any fundamental reason.  Just that the bull market is now 9 1/2 years old.

It seems like every time there is news of trade war or tariffs the stock market gets hit.  But almost immediately it recovers and erases those losses which indicates internal strength.  This happened again on Wednesday night and the S&Ps were down 14 points Thursday morning.  The rally that day resulted in an outside day up closing over the previous day's high.  Friday the market followed through higher and is now poised to test the all time highs.  

Can't fight the tape...

Bears argue that the market is rallying on narrow leadership (FANG stocks) but that was a useless indicator throughout 2017 so I'm inclined to ignore it now.

Comments
By metmike - Aug. 4, 2018, 3:14 p.m.
Like Reply

Excellent points Joj, the trend is your friend. But the trend is your enemy if we are near a top.


And welcome back!


By mcfarm - Aug. 4, 2018, 3:49 p.m.
Like Reply

if you remember some the recent highs were driven by things with out much foundation. ie the sugar candy ice cream high of the bill Clinton years. This current high is very unlike those. Driven by capitol investment and demand. Shelves were stocked and emptied and those shelves have to be re - stocked. Also  he factor you will not hear about on the msm is the astounding amount of silly regulations the Trump administration has done away with so that businesses can plan and grow and hire with some measure of security with out undo interference