They either love Donald Trump as your President. Or maybe it's that they're just happy the election is over.
Either way, this consolidation has now resolved in the direction of the underlying trend: Up.
In fact, yesterday we saw the most amount of stocks on the NYSE hitting new 52-week highs that we've seen in years.
Breadth expansion is not evidence of deteriorating market participation. It's by definition, the exact opposite of that.
More and more stocks and sectors making new highs is something you historically see in bull markets. So this is perfectly normal.
Remember when they kept telling you that this was only a "bear market rally" because the small-cap indexes hadn't made a new high yet?
They were lying to you.
Besides, the S&P600 Small-cap Index just closed at a new all-time high yesterday.
Imagine waiting for this index to make new highs before deciding to participate in this bull market?
There are serial killers out there who actually think this way. These people are sick in the head.
The much more reliable confirmation indicator, which dates back to the late 1800s, is the Dow Jones Transportation Average, which just went out at new all-time highs as well.
One of the main reasons we've been buying stocks so aggressively, election or no election, is because I've had a hard time believing that this bull market (which is now in year 3) is going to come to an end without Transports and Small-caps breaking out above their prior cycles highs.
As it turns out, that was sound reasoning.
So with that in mind, if this bull market is not going to end without these two indexes breaking out, as it just proved, then do you think it's going to end with just one new high?
Or should we expect a lot more new highs coming, now that these multi-year bases have completed?
For me, it's the latter.
We went over all my favorite trades and setups on this week's LIVE Video Conference Call. Make sure you give that a watch, download all the charts, and review each of the trades.
You see the research. You see the commentary. You wonder why most of the world's largest financial institutions pay to see our ideas.
