This is Mid-Cycle Market Behavior
And it's not just a few stocks leading the way.
It's more stocks than ever actually.
Last night we discussed which names we're buying here and which stocks we're adding to. But it's more of a function of this being the right market for that sort of thing.
Look at the breadth data from Monday's action. You notice how there aren't any stocks that are making new lows, on any timeframe?
As we've said all year, mathematically you cannot have a bear market, or a downtrend of any kind, without the prices of stocks going down.
And we haven't seen an expansion in new lows AT ALL. What we have seen, however, is an expansion in the number of stocks making new highs:
There are times in the market where you want to be more cautious. There are even times to be aggressively short.
And there are times to be buying stocks, adding to positions and calling your offensive plays because your offense is on the field.
We continue to be in the "shareholders are being rewarded" environment, as well as the "cash holders and short sellers are being penalized", type of environment.
And so we've been acting accordingly.
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