Dan is in Italy, sitting on a beach, and sipping an Aperol spritzer with his pinky out.
I have been asked to come out of retirement and write something other than a snarky LinkedIn post.
The rally last week put a cap on any talk of a possible “rug pull”.
The overall market is pushing higher, and the trend is positive. Everything we care about confirmed this trend. Grip it and rip it.
In this market environment any declines need to be viewed as short term because the technicals say so…
S&P 500
The S&P 500 is well above its, all-important, 60-week weighted moving average and the moving average itself is trending higher. Investing is simple; buy things that are moving up and to the right.
Source: AmiBroker
Dow Jones Transports
The Transports have recently woken up and in a big way. You can argue that the last 4 years has been a dumpster fire but the only thing that matters to us is the current trend. The index has decidedly rallied off its short-term lows and moved above its 27-week simple moving average and the moving average itself has stopped going down.
Source: AmiBroker
NYSE Advance Decline Line
When the stock market makes a new high, the first thing I look at is the NYSE Advance Decline Line. It’s starting to pull away from its all-important 43 week weighted moving average and the moving average itself is trending higher.
Source: AmiBroker
NYSE New Lows
You can’t argue with math. When the NYSE New Lows are low it is mathematically impossible to have deeper declines. If you want to create a scenario in your head about the world coming to an end, by all means, have at it. I would prefer to stay here on Earth and just roll with the data.
Source: AmiBroker
High Yield Bonds
It’s hard to get bearish when junk is trending higher.
Source: AmiBroker
Conclusion
Your personal opinion is as useless as mine.
The data says we are so back.
Data > Feelings. Get bulled up!
by Manish Khatta “Not a CMT”
CEO & CIO
Disclosure: This information is prepared for general information only and should not be considered as individual investment advice nor as a solicitation to buy or offer to sell any securities. This material does not constitute any representation as to the suitability or appropriateness of any investment advisory program or security. Please visit our FULL DISCLOSURE page.
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