It is unique to see the market continue to move up with this much negativity. A pull pack like to today felt inevitable. It is also unusual to see 17 trillion in market cap make new monthly highs, with only 350 equities participating. Most stocks have not been participating in the upward movement the last few weeks. It has all been pretty much the AI trade.
I don’t really know what it means or what to do with this information…except continue to sit on the sidelines. Shorting has been tough most of the week, but went well today. I am finally up for the week with the strategy I am testing. Personally, I would like to see a bigger pullback, but the market can stay irrational longer than I like.
52 week highs continue to diminish
New monthly lows continue to build. Now that they are over 1000, they are likely to grow before a reversal.
This one just befuddles me.
Once the net surpasses -1k, I will be looking for a bottom and reversal. I would love to see it pass -2k before it reverses. That would be a good time to have one last greedy push before the end of the year. -3k would be even better!
What I keep wondering to myself is what will happen when the AI trade bubble bursts? The market breadth rules that I use will need to be adjusted for that period.
