This is a question I’ve been getting a lot.
“JC, how could you say we’re already in the 8th Month of a new bull market???”
The things people call me over email or on twitter are not something I would repeat in front of my mother, or daughter, and certainly not in front of any of you guys.
But I’m a big boy. I spent a lot of time on trading floors, dugouts and locker rooms. I’ve heard way worse.
It is interesting, however, to observe the feedback I get from just some basic arithmetic.
This isn’t like some random opinion I have about the economy, or Fed policy or earnings. This is just 3rd grade math.
Are more stocks going up? Are more stocks making new highs? Or are more stocks going down and making new lows?
Since June, the answer has been up and certainly not down.
Notice how the new lows list peaked in Q2. Even though some of the large-cap growth-heavy indexes made new lows later in the year, even for just a hot second, by that point there were almost no stocks left that were going down.
The bottom was in June.
The only people who want to argue against that are the ones left holding the bag in the few remaining names that kept falling.
But that’s only a tiny tiny part of the overall market. They may represent a larger weighting in some of people’s favorite indexes, but now whose problem is that?
And certainly not yours, if you’ve been here paying attention to what we’re doing at All Star Charts every day.
So kudos to all of you who have been killing it over the past few quarters. It’s been almost impossible to not make money from the long side since last summer.
And you’re seeing it.
If you do not have access to last night’s call, just give Mary a buzz and she’ll set you up: +1 (323) 421-7910
Let me know what you think.
Where am I wrong here?
What am I missing?
Shoot it over. I love hearing from you guys!