HomeMost PopularInvesting5 Signals Point to a Sustained Bull Market

5 Signals Point to a Sustained Bull Market

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โ€œWhy the Stock Marketโ€™s Climb to a New High Makes Me Furiousโ€

Look, I get it. The stock market just hit a new high, and everyoneโ€™s feeling all giddy about it. But letโ€™s not kid ourselves. While some folks are singing the praises of the current bull market, Iโ€™m seeing a different picture altogether. Listen up, because youโ€™re about to hear why you should be fuming too.

The Equity Put/Call Ratio Flashes Extreme Reading

I donโ€™t know about you, but when I see equity options traders turning over more puts than calls, Iโ€™m not doing cartwheels. This rarity has historically led to a higher S&P 500 return, but itโ€™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 itโ€™s not enough to convince me that weโ€™re on solid ground. Letโ€™s not get carried away just yet.

Stocks Retake Key Moving Averages

Sure, the moving averages are essential, but letโ€™s not forget that just a couple of weeks ago, the majority of stocks werenโ€™t even above their 50-day moving average. Now suddenly, they are? Thatโ€™s hardly a reason to start singing โ€œKumbaya.โ€

Small Caps Explode on Massive Volume

The recent surge in the Russell 2000 index might look promising, but letโ€™s not forget about the heavy volume accompanying it. Itโ€™s not exactly a sign of a stable and sustainable upward trend.

Inflation is Tamed

A โ€œbenignโ€ CPI report and the likelihood of the Fed not hiking for the remainder of 2023 may seem like good news, but I wouldnโ€™t be so quick to break out the champagne. Letโ€™s not get ahead of ourselves here.

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