It was another big, bullish day for the Russell 2000 small-cap index yesterday.
While the broad market struggled to keep its head above water, small stocks were at it again, digging themselves out of a hole for a 1% gain on the day and new all-time closing highs. It’s tough to feel too bearish in a market where riskier stocks are leading us higher. All-time highs lead to clear skies above.
There it is again: all-time highs. It feels like we just can’t escape that phrase…
Of course, a lot of investors are afraid that buying the highs is for lemmings and idiots. They don’t want to get caught up in another devastating flush. It’s better to not even venture into the markets, they reason. After all, hanging onto no gains at all feels lot better than losing your shirt.
I told you earlier this week that the latest round of new all-time highs has spooked quite a few investors. But that’s only because most market participants haven’t studies their history books. If they did, they would know that 127 new all-time highs have been made during the average secular bull market since 1949.
During the 1982-1987 bull, the market notched 152 all-time highs. Since the market turned higher in 2009, we’ve only seen 22 new all-time highs so far. That’s even less than the average all-time high tally from cyclical bulls. Any way you slice it, new highs aren’t generally a cause for concern…
You can ignore any bearish discussion about new highs for now. Instead, watch the market as it consolidates at these levels. Buying opportunities abound for traders and investors alike…
for The Rude Awakening
Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.
Addison takes a look behind the curtain during a seminal moment in The Daily Reckoning’s history…
A study published in the most recent issue of The Journal of Neuroscience was sparked by researchers who wanted to find out why cocaine addicts so frequently relapse despite sincere attempts to recover from their addiction. Stephen Petranek has more…
While smaller microbrews might not be the best investment right now, I think the trend of better beer isn't going anywhere. And the bigger breweries are realizing they need to figure out how to compete in a market where tastes are clearly evolving.
We recently had a conversation with our friend Chuck Butler -- editor of the Daily Pfennig and Managing Director of Global Markets at EverBank. We discussed U.S. fundamentals… China… special drawing rights… emerging markets… and more!
Just when you thought the bond bull market was over... Jim Rickards gives his insight on what could cause a bond market rally.
Manic phases in political history and stock history are compared and contrasted in this Memorial Day edition where we praise the people who fought in our wars.