Time For Breadth Expansion

JC Parets
June 8, 2023

If this is a bull market, then what comes next?

Breadth Expansion.

More upside participation.

Sector Rotation.

The list of the 52-week highs getting longer.

We've been betting that this is a bull market since last year. That has worked in our favor.

But what does the market need to do to reiterate that we are still, in fact, in a strong, healthy bull market?

More new highs.

Here's a look at the NYSE new 52-week highs list creeping higher in recent weeks.

You can see it in the Nasdaq as well.

Will we get an expansion in the new highs list?

This is the chart to watch.

And it makes sense, doesn't it?

Stocks are supposed to do well after midterm elections.

And they have.

Here's the average 4-year cycle behavior going back to 1950:

This is a lot of what we discussed on this week's LIVE Monthly Charts Strategy Session.

Check it out here.

Go through the structure of the market and which are my favorite trades to take advantage of the current trends.

For me, it's about first identifying the type of market environment that we're in. AND THEN we choose the tools and strategies that are best for that type of environment.

I think we did a good job of that.

Give it a watch, and then let me know what you think!

JC

 

 

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