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Where Are The New Highs?

December 7, 2022

In Bull Markets we see more stocks making new highs.

That's just math right?

And when we talk about new highs, you'll often hear people discussing the new 52-week high list.

Until recently, this list was almost non-existent.

So while there's definitely a ton of more action there, we should really be seeing an expansion in new 1-month highs and new 3-month highs.

Crawl before you walk.

If this stock market rally has legs, more new highs is just mathematically necessary for that to occur.

It's a market of stocks.

Here's the 3-month high list on the New York Stock Exchange. An expansion in upside participation will go a long way in proving that, yes, in fact the path of least resistance is higher:

More Stocks Join The Party

November 26, 2022

Are you noticing?

More stocks are working to the upside.

More of our upside objectives are getting achieved.

Many of our shorts never even get triggered.

A lot of breakouts are holding.

What type of market environment would you describe that as?

Well, we're seeing the most stocks on the NYSE above their 200 day moving average since March.

The Dow Jones Industrial Average just went out at new 6-month highs.

So did the S&P Financials Index.

None of these strike me as characteristics of downtrends.

Stocks In Bull Markets

November 25, 2022

Bull Markets are a way to describe the environment.

Individual stocks do not enter "bull markets". That's not a thing.

In a bull market, more stocks are going up than going down. In bear markets you see the exact opposite.

List of Uptrends Keeps Getting Longer

November 22, 2022

This doesn't have to be complicated.

Is the list of stocks and sectors in uptrends getting longer or is it getting shorter?

Are we seeing more stocks breaking down to new lows, or fewer?

If you can count, then you know the answer.

The question is, are you even willing to count?

Bull Market Confirmation

October 24, 2022

How do we know if we're in a bull market or not?

Generally speaking, more stocks are going up than going down in bull markets.

And sure, there are a lot of different ways to quantify it, but this is really the gist of it: Are more stocks going up or are more of them going down?

It really is that simple.