We call that Bull Market Breadth

JC Parets
August 26, 2024

We're seeing stocks go up.

In bull markets, that actually happens quite often.

We just saw new all-time highs in the Dow Jones Industrial Average, S&P500 (market-cap weighted), S&P500 (equally-weighted), NYSE Composite Index, NYSE Advance-Decline and so much more. Check that out here.

But it's not just a U.S. thing. Look at all the other countries around the world.

This table below shows all the ACWI markets and where their prices are relative to various moving averages - ranging from short-term (10-day) up to long-term (200-day).

Notice how all the developed markets are above all of their moving averages, no matter how short-term or long-term they are:

Even the Emerging Markets, all of them but Mexico and Turkey are above every single one of their moving averages.

And why does this matter?

Because these moving averages are just smoothing mechanisms. If the price of an asset is above its 200 day moving average, then it's probably not in a downtrend.

You can make a similar argument about different time horizons as you get more short-term.

But the bottom line is that you cannot have a bear market, or a correction of any kind, without the prices of stocks falling.

And when you look around the globe, it's the opposite of prices falling.

They keep going up. Here are two very important stocks that are headquartered outside the U.S. but trade right here on U.S. exchanges. Check these out here.

Now let's take a look at the number of stocks falling in price. In order to keep things simple, let's just stick with U.S. stocks.

Here are all the S&P1500 stocks, which consist of 500 large-caps, 400 mid-caps and 600 small-caps.

We broke them all down by sector and how many of the sector components are making new 10-day lows, new 1-month lows, new 3-month lows, new 6-month lows and new 52-week lows.

Hint: The new lows list is non-existent:

The reason you're not seeing many stocks hitting new lows is because this is a bull market.

Stocks go up in price during bull markets.

You'll know when stocks are in a bear market because the majority of them will be going down in price.

At this point, there aren't any stocks going down in price.

It's a bull market.

So act accordingly.

Premium Members make sure to catch up on last week's LIVE Conference Call, download the 140 charts and review each of the new trades.

If you're not yet a Premium Member of ASC Research, you can get 24/7 access to all the trade ideas here RISK FREE.

See you in there!

JC

This Is Huge

The value of Nvidia $NVDA is up 10X over the past two years. That's explosive.

The growth here is staggering, unlike anything we've seen from a single company and one industry group.

So we put together a FREE special report to break it down for you.

We looked at Nvidia, the semiconductor complex more broadly, and what we think of the group going forward.

Click here to have it delivered to your inbox.

And Sean, Strazza, and me will be live on Wednesday at 3:45 p.m. ET to talk about Nvidia's Q2 earnings as the numbers are released.

We'll talk about the numbers, the market's reaction, and how we'll make money from it.

We'll be joined by multiple special guests with things of good value to share about NVDA, semis generally, and the stock market.

Click here to join us live at 3:45 p.m. ET on Wednesday.

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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