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Where the new highs at?

April 19, 2023

In bull markets you regularly see more and more stocks making new highs.

That's just a normal characteristic of this type of market environment.

Yesterday we saw a ton of stocks making new 52-week highs - names like Nvidia, AstraZeneca, Salesforce, Lockheed Martin, General Electric, Chipotle, Autozone, Motorola, Lennar and many others.

However, in aggregate we have yet to see that key breakout in breadth expansion in the new 52-week highs list.

The new lows list is non existent. It's been that way since the 4th quarter last year.

But where the new highs at?

You're seeing a similar story in the both the S&P500 and Nasdaq100.

New highs stand up!

This is mathematically what comes next, if this is in fact, an ongoing bull market in stocks.

There's little evidence that stocks are in a bear market.

Think about it like this:

Over the past 10 months have the majority of stocks been going up in price? Or have the majority of stocks been going down in price?

The answer is up.

So we know that stocks have been in a bull market for almost a year now, it's just math.

THE QUESTION is whether stocks continue higher or if they, all of a sudden, randomly, turn around and begin to fall in price?

The new highs and new lows lists are helpful in this regard.

And since most stocks are so far from new 52-week lows, we'll be keeping a close eye on the 1-mo, 3-mo and 6-mo lows lists.

If we start to see those picking up, I would expect the indexes to follow.

But a major jump in the new 52-week highs list, as shown above, would be the logical next step if this is, in fact, an ongoing bull market.

What do you think?

Let us know!

We love to hear from you.

JC


Mid-Month Conference Call: We ripped through 168 slides in 68 minutes on Monday night, which has to be some sort of chart-speed record. We're also extremely efficient. Everything you need to know about this market right now is right here.