The Most Bullish Thing That Can Happen

JC Parets
July 6, 2024

With the S&P500 and Nasdaq closing at new all-time highs this week, the questions remain:

Is this sustainable?

Does the rally have legs?

Can this bull market continue?

Before I get to what I think is the most bullish thing that can possibly happen to this market, I have one sector I'd like to focus on quickly.

This is the S&P Industrials Index, which historically has the highest positive correlation with the S&P500 of all the S&P sectors.

Is this just a consolidation within an ongoing uptrend in a leadership group? Or is this a double top that's about to come tumbling down?

I have a good feeling that the resolution in this situation above is going to likely move in the direction of the overall stock market.

So rather than overthinking this one chart up above, let's zoom out and broaden out our perspective.

Here is one of my favorite risk-on / risk-off indicators looking to complete a multi-year base and break out to new all-time highs:

This chart of High Beta vs Low Volatility looks a lot like the Equally-weighted S&P500 and Nasdaq100, which has served as a better representation of the typical stock than some of the popular Tech-heavy market-cap weighted Indexes.

An upside resolution here would be the most bullish thing for this market that I can think of.

And I believe the higher probability outcome is, in fact, an upside resolution.

This is a bull market.

Good things happen to shareholders during bull markets.

A breakout here would be very rewarding for people who own stocks. It would be detrimental to those who do not.

If you do not own stocks in a bull market, then what are you even doing as an investor?

So which stocks do we want to own specifically right here right now?

We went through each of them one by one during this week's LIVE Video Conference Call.

Premium Members make sure to check out the video replay here, download all the charts and review each of the trade ideas.

JC

How To Ride This Supercycle

We're in the early innings of a commodities supercycle, but most investors aren't prepared for it.

We have the data, and we know what's inside Americans' portfolios.

It's not gold, and it's not energy, and that's a huge catalyst.

Rick Rule and I cover everything you need to know right now about precious metals, oil and gas, and other critical commodities.

Click here to check out that conversation.

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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