We’ve Been Cheering for Quite a While Now
Stock market bulls got something to cheer about last week.
Heritage Capital President Paul Schatz noted that New York Stock Exchange’s advance/decline line set a new all-time high this week.
The indicator counts the number of stocks rising on a particular day and subtracts the number of stocks falling and plots the result over time.
“When the major stock market indices make new highs, but the NYSE A/D Line does not, that’s where bulls should begin to worry,” Schatz writes, adding that “the exact opposite is now happening,” which he said was “typically a good sign for further strength in stocks over the medium-term.”
Still, he added the obligatory caution that past performance is no guarantee of future results.
To reinforce our positive opinion regarding the overall economy and the stock market, take a look and read the last few “Monday Morning Outlooks”.