Stocks are off to the moon, aren’t they?
I am reading many articles explaining why stocks are not in a bubble and why they are headed much higher this year. With such complacency rearing its ugly head again, that is setting my contrarian antennae twitching once more.
Internal data, such as the number of NYSE new highs/new lows over the year continue to lag the rally. Likewise the number of S&P issues above their 200-day MA and 50-day MA also show marked divergences. The markets are being driven to new highs by fewer and fewer stocks.
This is not the sign of a healthy market. But the market marches on regardless – until it doesn’t.
I am taking a break now and I imagine the top will arrive while I am away – they usually do. Markets are like kettles – they never boil over when you are watching them.
But I maintain that March will see the tops (see last WR).
I will leave you with this Dow setup:
I have a good tramline trio working and the market has rallied to kiss the underside of the central tramline – and on a big neg mom div on the hourly.
Could this be it?