New Highs Keep Piling Up

JC Parets
November 28, 2020

It's nothing new for us who keep track of this stuff regularly. We're seeing a lot of new highs. In fact, we saw more new highs in November on both the New York Stock Exchange and the Nasdaq than we've seen since early 2018.

We're not seeing deterioration in breadth, like we saw in January/February 2020. We're seeing expansion of breadth. We're seeing more participation, not less. More countries are breaking out to new highs, not fewer. These are all characteristics of bull markets and uptrends, not bear markets and downtrends.

They keep telling me that Tech and Discretionary and Communications are no longer participating. But then when you look at the small and mid-cap indexes of those sectors, they've been breaking out to new highs. But now, just to really piss off the permabears, the large-cap indexes are breaking out as well:

I see consolidations within ongoing uptrends resolving higher. What do you see?

When you break these down to more specific industry groups, we saw new all-time highs across the board this week.

We're not seeing breadth deterioration.

Small-caps, Transports and Emerging Markets are no longer the laggards. They've been leadership groups for months.

Are you noticing the rotation taking place? Not just among sectors, but also at the market cap level?

Anyway, the S&P500 just went out at an all-time weekly closing high. So did the NYSE Stocks-Only Advance/Decline line.

What's got you bearish?

Talk to me.

JC

 

 

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