Most New Highs In Years

December 18, 2023

As we always like to say around here, it's a market of stocks.

When we refer to "the stock market", let's remember that there are 500, or so, stocks in the S&P500. There are 3000 stocks in the Russell3000.

It's a market of stocks.

That's how we knew the market started to improve 18 months ago, because the list of stocks making new lows peaked in June 2022.

Even in the most recent correction in Q3 this year, the new lows list peaked on October 3rd.

On the other side of that formula is the list of stocks making new highs.

The list of stocks on the NYSE making new highs is the longest its been in over 30 months.

The list of stocks making new highs keeps getting longer. The list of sectors and industry groups making new highs keeps getting longer. The list of countries around the world making new highs keeps getting longer.

It's almost as if the market is getting stronger, not weaker.

And when you zoom out, you can see that this structural bull market remains intact.

Look at these massive uptrends, a multi-year consolidation, and now the resolution in the direction of the underlying trends:

Even when you look underneath the surface at the rotation taking place in this environment, you're getting the same conclusion.

Here are High Beta stocks breaking out to new highs relative to Low Volatility:

These are the things you see in healthy market environments.

And we're seeing it this time too.

We're 18 months into a "new" bull market.

My question is at what point do they start to use the word "new" to describe it?

Heck, I still have people telling me it's not a bull market.

Maybe we should send them this chart:

Notice how it's only the more defensive sectors that are struggling to keep up with the rest. Of course, this is historically consistent with bull markets.

Also notice how the most offensive sectors are leading the way higher. Again, this is perfectly normal historically.

The bigger question is what we're going to do about it now?

That's where tonight comes in.

I'll be hosting our LIVE Conference Call tonight Monday 12/18 @ 6PM ET.

Make sure to REGISTER HERE if you haven't already.

See you then!