Market Internals Hit New Highs

JC Parets
July 17, 2024

Counting is a lost art.

Humans love their short cuts.

Rather than taking the time to actually go one by one counting each of the stocks that are going up, down, or sideways, humans would rather skip that altogether in favor of their favorite Index or some kind of statistic.

 You don't need any sophisticated math skills in order to count how well or poorly the stock market is doing.

It's actually incredibly simple. 

Humans just don't want to do it.

And that's the arb.

Last night I shared a short video with you where I went one by one, walking through each sector on a market-cap weighted basis, each sector on an equally-weighted basis, each sector on a relative basis, and each sector's small-cap index.

The feedback we've been getting has been off the charts.

You see, I normally don't do this during our LIVE Conference Calls. Usually this is something I reserve for myself and my own process, and then I just provide you with my conclusions, the most important trends, and the most actionable trends.

But this time I wanted to show you just how valuable this process can be, especially when you do it every week.

Check out my short video about each of the sectors here.

Also remember, this isn't just something I do for each sector. We do this for all the stocks too.

And while it's nice to quantify the results and get the totals, there is nothing like actually taking the time to go one by one.

I encourage you to do that as well. And if you don't have the time, then find someone who does and get their notes. Trust me!

You'll quickly see why the NYSE Advance-Decline Line just went out at new all-time highs.

In fact, if the NYSE A-D Line wasn't making new highs, then that would be weird. But you have to actually do the work to know that.

Here's what it looks like today:

Remember, it's a market of stocks.

It's not just 7 stocks. It's not just Tech. And it's not just large-caps.

It's just a bull market.

It has been for over 2 years now. 

We've had some corrections, like we did in the majority of stocks and sectors this year. And we will definitely have more corrections. At some point, this bull market will even come to an end, and a new bear market will start.

But you'll see it in the market internals before you see it at the index level. You'll also see it at the sector level, before you see it in the indexes.

By the time the pretty lady on the tv tells you we're in a bear market, the internals will have already been warning you for a long time, and we'll likely be closer to a new bull market.

So take the time to actually go and count. Or like I said, if you don't have the time then find someone who does and get their notes.

Here's how I do it at the Sector level to help give you some perspective.

I think you'll enjoy.

Give it a watch and then let me know what you think!

JC

What Time Is It?

When it comes to the market and investing, trading, and/or speculating, there are times 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 most aggressive plays because your world-class offense is on the field

We continue to be in a "shareholders are being rewarded" environment.

And we also continue to be in a "cash holders and short sellers are being penalized" environment.

We've been acting accordingly.

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As always, if you have any questions about recent price action and what's happening with markets right now, you can always drop us an email.

 

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