When stocks as an asset class are in a strong uptrend, or "bull market" as some like to call it, they don't just perform well on an absolute basis, but they also tend to outperform their alternatives. Two perfectly good alternatives to owning stocks are Bonds and Precious Metals.
As you can see in this chart, in early March the S&P500 broke key support relative to both US Treasury Bonds and Gold. All of that former support since 2018 "should" turn into resistance, based on our polarity principles.
In early May we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.
If you haven't read our initial post linked above, we'd encourage you to check it out so you understand what the rationale behind these five indicators is.
Thanks to everyone who participated in this week's Mystery Chart.
Some of you were sellers of this failed breakout, while others were anticipating a move back to new highs after this brief correction, but staying patient and waiting for confirmation first before entering.
It was a mixed bag overall, so let's get into what it was and what our interpretation is.
In early May we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.
If you haven't read our initial post linked above, we'd encourage you to check it out so you understand what the rationale behind these five indicators is.
It's also worth pointing out that last week we noted that despite the slight improvement in two of these measures, zero of the five were above their key risk levels. Despite that, the market was telling us that the short-term momentum remained to the upside and our long ideas were working well.
After a couple of strong weeks in the market, let's take a look and see how these longer-term indicators have fared.
Earlier this month we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.
In this post, we'll update those charts without going into as much detail as to why they're important. So if you haven't read our initial post linked above, we'd encourage you to check it out.
With that said, let's jump in and see how these charts have developed since.
Why does Technical Analysis work? Because markets trend. No one can argue that. I don't care who you are. And what do we do as technicians? We look for trends!
I was recently a guest on the Trends With Benefits show. It's the perfect name for a podcast about the stock market, especially when you invite someone like myself, who is constantly looking to benefit from underlying trends in the market.
Earlier this month we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.
In this post, we'll update those charts without going into as much detail as to why they're important. So if you haven't read our initial post linked above, we'd encourage you to check it out.
With that said, let's jump in and see how these charts have developed since.
Earlier this month we outlined the "Five Bull Market Barometers" we're watching to identify the beginning of a new bull market in stocks.
In this post, we'll update those charts without going into as much detail as to why they're important. So if you haven't read our initial post linked above, we'd encourage you to check it out.
With that said, let's jump in and see how these charts have developed since.