Time To Bet On The Bull

March 9, 2024

The stock market feels heavy.

The majority of stocks are having a hard time making new highs.

Some of the largest Technology and Consumer Discretionary stocks keep breaking down to new lows.

So let's check in on how the journalist community feels about the current market:

I see journalists are telling investors to, "Bet on the Bull".

Journalists are suggesting that, "Stocks look poised to keep rising, thanks to strong economic growth".

You can't make this up.

Look at that Barron's cover this morning.

Meanwhile, look at this hot mess in the Russell2000 (representing small-cap stocks) and the Value Line Index (representing the median stock).

Down, up, down, up, down, up, down, up, down, up....?

I keep being told that "Small-cap breadth is improving".

But when I go and count one by one, I just don't see that at all.

In fact, by my count, small-cap breadth is "improving" so much that not a single Small-cap sector has reached overbought conditions in 2024.

Not one.

In healthy uptrends, you regularly see stocks and sectors reaching overbought conditions (14-day RSI > 70).

To be clear, we have not seen that at all IN ANY small-cap sector this year.

They peaked in December and still haven't been able to recover.

Meanwhile, the median stock is acting about the same - NOT going up in price.

Also, you want to hear the latest? Gold Investors are now having their way with investors who came late to the party in Tech stocks.

Gold is breaking out to new all-time highs.

The Nasdaq leaders are falling one by one, with Apple, Google and Tesla all hitting new relative lows this week.

In case you need a reminder, this market environment is NOT like the one we had in Q4.

It's nothing like it, in fact.

Are you paying attention?

What are you doing about it?

Keep in mind, there are other assets working.

Have you seen what's happening in Crypto?

And it's not just Bitcoin, it's all the others.

Our new screen that alerts us when ICOs cross into our universe is one of the most exciting developments in ASC history.

This is really cool.

Filed Under