With the Dow, S&P 500, NASDAQ and Russell 2000 all hitting new highs, the media loves to ask if winter is coming. We’ll look at three frequently discussed topics: recession, peak economic strength and the potential for an inverted yield curve. We’ll close with a look at the strength of the market trend.
This week the S&P 500, NASDAQ and Russell 2000 reached new highs. With the resumption of the bullish trend, we’ll look at the best performing sectors and how to select winners using relative strength. Since this week marks the official breakout from the 2018 correction, a table listing the characteristics of all corrections in the S&P 500 going back to 1936 is also included. We close with a look at the new highs in the S&P 500 and the long term trend.
This week the headlines were dominated by fears of emerging markets contagion from Turkey’s currency crisis and an economic slow down in China. While this is never a delight, we’ll learn about ways to determine when to sit tight and when to shift to defensive assets. Along the way we’ll review the health of the markets.
In this week’s video we’ll look at fear of heights and new highs. As the market hovers near highs, we’ll look at the implications of new highs for trend following and bust the myth of an aging bull market.
In this week’s video we’ll look at the road map to 3,000 in the S&P and 300 in the SPY ETF, along with peaks and potholes that mark the way. In particular we’re going to look at whether slowing momentum is signaling a market peak. We’ll take a trip back to 1954 to compare a similar peak in momentum to today.