“Why the Stock Market’s Climb to a New High Makes Me Furious”
Look, I get it. The stock market just hit a new high, and everyone’s feeling all giddy about it. But let’s not kid ourselves. While some folks are singing the praises of the current bull market, I’m seeing a different picture altogether. Listen up, because you’re about to hear why you should be fuming too.
The Equity Put/Call Ratio Flashes Extreme Reading
I don’t know about you, but when I see equity options traders turning over more puts than calls, I’m not doing cartwheels. This rarity has historically led to a higher S&P 500 return, but it’s hardly a reason to start throwing confetti around.
New Highs are Exceeding New Lows
The recent reversal of new lows exceeding new highs might look positive, but it’s not enough to convince me that we’re on solid ground. Let’s not get carried away just yet.
Stocks Retake Key Moving Averages
Sure, the moving averages are essential, but let’s not forget that just a couple of weeks ago, the majority of stocks weren’t even above their 50-day moving average. Now suddenly, they are? That’s hardly a reason to start singing “Kumbaya.”
Small Caps Explode on Massive Volume
The recent surge in the Russell 2000 index might look promising, but let’s not forget about the heavy volume accompanying it. It’s not exactly a sign of a stable and sustainable upward trend.
Inflation is Tamed
A “benign” CPI report and the likelihood of the Fed not hiking for the remainder of 2023 may seem like good news, but I wouldn’t be so quick to break out the champagne. Let’s not get ahead of ourselves here.
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