No New Highs. So What?

JC Parets
June 16, 2024

On Friday you saw the highest weekly close for the S&P500 in history.

Do you know how many stocks on the entire NYSE closed at a new 52-week high?

12.

Meanwhile in ETF land, the Nasdaq100 $QQQ and S&P500 $SPY hit new all-time highs on Friday, but we also saw fresh 6-week lows for the NYSE Advance-Decline line. It was also a new 6-month low for the Nasdaq Advance-Decline line, for those keeping score at home.

Here's a chart of all the S&P Sectors on an equally-weighted basis over the past 15 weeks. Consumer Discretionary has been the worst. Utilities have been the best by far.

You'll notice that the Equally-weighted S&P500 and Nasdaq100 have made no progress or are down during this period.

Industrials were a huge winner off the 2020 lows AND the 2022 lows.

Leadership from Industrials was very constructive for these cyclical bull markets.

But Industrials are now hitting new multi-year lows relative to S&Ps. This is the opposite of leadership...

Sector rotation is lacking and the new highs list is non-existent.

I would encourage everyone to go and count all the large-cap stocks that are actually hitting new highs.

It won’t take you very long at all. But that's because there aren’t many.

But of all the largest public companies, here are the ones whose stocks are holding up the best.

We originally built the Hall of Famers list as a source of information.

Basically, if we get the direction of the biggest and most important names right, we'll get the direction of the market right.

But as it turns out, this scan also became a great source of trade ideas.

Check out the full Hall of Famers Report here.

JC

We Built This System

A few years ago, I decided I wanted to start using insider transactions as a way to find trade ideas.

So we built our own system for analyzing SEC filings.

And we're applying our technical analysis to the stocks in these filings

(We're not going to blindly buy a stock just because Nancy Pelosi did).

The result is The Hot Corner.

And this week Strazza and I explained this process in great detail for the first time ever.

Click here to see how we do it.

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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