No Correction without Stocks Falling in Price

JC Parets
August 20, 2024

I find myself saying this a lot these days....

But again, Mathematically, you cannot have a bear market, or a correction of any kind, without the prices of stocks falling.

And so if we know that, then shouldn't we monitor how many stocks are actually falling in price?

This is just common sense isn't it?

Well, where are the new lows?

They're non-existent...

Even with the VIX supposedly tripling overnight, a couple of weeks ago, the list of stocks making new 1-month lows couldn't even exceed the Spring highs.

The list of 3-month lows couldn't exceed the Fall highs.

So in other words, the new lows lists over the past month have been contained to levels we've seen recently.

If this was a correction, or we were going into a bear market, then mathematically we would be seeing stocks going down in price.

But as it turns out, we are NOT seeing the prices of stocks falling. It's actually been the exact opposite.

And the best part is that almost all market participants completely ignore this data, in favor of arbitrary things like the economy, or even worse, something they refer to as "fundamentals".

I find the whole thing to be rather silly.

We'll know when stocks are entering a correction, or even a bear market. Do you know how we'll know?

Wait for it...

The prices of stocks will be falling

Instead, we're just seeing more and more stocks rising in price.

You can't tell me that the market is getting worse, if mathematically things just keep improving.

Last month we saw the most amount of stocks on the NYSE making new 52-week highs throughout this entire bull market.

We also saw the most stocks on the Nasdaq hitting new highs than at any point in this entire multi-year bull market.

When the offense is on the field we want to call our offensive plays.

We're buying stocks. And that keeps working.

You noticing?

So last night, I walked through exactly what we're doing about the current market conditions in our LIVE Mid-Month Conference Call for Premium Members of ASC Research.

This is where I share only our best trades and put them all into the context of the global macro environment.

Premium Members catch the replay here if you haven't already.

And if you're not yet a Premium Member of ASC Research, you can join here RISK FREE and get the replay for last night's big event, including 24/7 access to all our trade ideas.

See you in there!

JC

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