Are you guys noticing how the new 52-week high list keeps getting longer, and not shorter?
I can’t emphasize enough how the lies about weak market breadth have been just that: Lies, or myths, or whatever words you need to use that won’t offend people. I stopped caring about that sort of thing a long time ago and just tell it like it is (someone has to). I’m just not seeing the weak breadth scenario playing out like they keep telling me. It’s actually been quite the opposite. We’ve been seeing expansion in participation for months. So this is really nothing new.
The Value Line Index has been a helpful barometer of US Stock Market strength in the past, and today is no different.
Here is the chart breaking out to new highs. Chalk this one up as yet another feather in the hat for the bulls:
This index uses an arithmetic mean to more closely mimic the change in the index if you held a portfolio of stocks in equal amounts. We look at it more as the ‘median’ change for stocks and it is often compared in my circles to the Mid-cap Indexes.
Regardless of how you use it or where it fits in your process, I think we can all agree that the Value Line Index breaking out to new 52-week highs, after all of the other stocks, sectors and indexes that we’ve pointing out that are doing the same, it’s another positive for stocks, not a negative.
I’d like to challenge you here a bit. I know you keep hearing this weak breadth nonsense as well. If you’re in that camp for some reason, can you please email me and tell me where you’re seeing this deteriorating breadth? Because I search far and wide and I’m just seeing the opposite!
Thanks in advance!