Dow's Largest Stock Breaks Out!

JC Parets
July 18, 2024

Is it bearish when the largest component in the Dow Jones Industrial Average breaks out of a multi-year base to new all-time highs?

To be clear, we're talking about the world's most important stock market index here. And UnitedHealth represents over 8.5% of the entire Papa Dow.

Look at this chart. While people are telling you that the market is in a bubble, things are parabolic and this is unsustainable, the largest weighting of the most important stock market gauge hasn't even done anything for years.

Until now...

Things are just starting to get going.

We saw breadth expansion over the past week that has sent market internals to levels we've never seen before.

Not only is this NOT a narrow market. The number of stocks participating to the upside continues to expand. In fact, here's what we've been doing about it.

The list of stocks going up is getting longer, not shorter.

You can see in this chart below how many stocks in the S&P500 are above prior cycle highs. Notice these lines plotted below are NOT falling, as they would in bear markets. They're all rising, as they tend to do in bull markets where breadth is expanding:

Meanwhile, the different sectors and types of stocks that are working continues to evolve as well, as this bull market goes from its infancy stages to a more mature mid-cycle phase. We call that sector rotation.

But one thing we know for sure by studying every bull market in history, is that the best performing stocks tend to make new highs quite often.

And that's where the 2-to-100 Club really comes in handy. We reverse-engineered what it takes for a stock to reach a $100 Billion market-cap.

We've made it so that it's next to impossible for the next $100 Billion company to NOT come from this list:

The 2-to-100 Club is specifically designed to profit off the performance of the fastest growing stocks in the world during bull markets.

And that's the type of market environment we're in.

Check out this week's 2-to-100 Club Report here.

And make sure to get through this week's LIVE Video Conference Call, download all the charts and review the new Trade Ideas.

If you're not already a Premium Member of ASC Research, you can sign up here RISK FREE and get immediate access to this week's 2-to-100 Club report and Trade Ideas, as well as everything that comes along with our LIVE Conference Call.

If you have any questions, or if you want to see if you have any credits on your account, shoot Mary an email or give her a call directly: +1 (323) 421-7910 

See you in there!

JC

 

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