With the overall stock market approaching new bull market highs, the number of new 52-week highs in the S&P 500 is expanding rapidly. As shown below, the net new highs indicator has come to life on the positive side after remaining stagnant for a few months. Because the year-over-year change in the market remained very negative up until just recently, stocks were not hitting new 52-week highs even though the market had been rallying strongly. Now that we're above levels that we were at one year ago, we're getting numerous 52-week highs on a daily basis. This is to be expected and will remain a bullish sign as long as the number continues to expand. If we see the number of new highs stop expanding or even start contracting, this will be a troubling sign that the bull market could be running out of steam.
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Stupid argument. Fundamentals are all bad.
Posted by: Bubba | October 12, 2009 at 05:01 PM
I feel that the market is being pushed higher with out any real fundamental support. This is nothing more than another "bubble" of sorts that will also come crashing down with no good outcome.
Posted by: Coral Calcium | October 12, 2009 at 05:05 PM
"Stupid argument. Fundamentals are all bad." - Bubba
Too bad for you that the Financial Markets always move stupidly ahead and never wait for your fundamentals. If they did everyone would make and not lose.
Posted by: Rocketeer | October 12, 2009 at 05:14 PM
Between the devil and the deep blue sea, money's going into stocks. I foresee an unintended consequence to Bernacke's reawakened awareness of inflation; as soon as interest rates are raised expect a reversal of fortunes.
Posted by: ed martinez | October 12, 2009 at 05:16 PM
question is now much longer will this bubble run?
Posted by: Lightnrod | October 12, 2009 at 05:53 PM
Which came first -- the choice of which indices to pair together to produce a plausible forward success theory, or the market moving forward, begging us to find out why in the face of such implausible exuberance?
Posted by: Jack Edwards | October 12, 2009 at 06:28 PM
As previously noted, these 52 week highs need adjustment for the falling dollar, when calculated by any other strong currency are actually down. OOps...
Posted by: contagiousNY | October 12, 2009 at 08:07 PM
Yes , there are new highs, but that is only a symptom of a bubble getting formed. As always bubbles collapse suddenly and this could be one of them that could collapse faster and may be the Doller will follow suit.
Posted by: chandragk | October 13, 2009 at 03:00 AM
Companies are showing profits thru belt tightening. Nothing wrong with this. But Lay off people, and less is spent. The old addage, nothing happens until you sell something. IF there is no disposable income, there is no sale, no sale, no company. Hammerin Hank P removed Lehman, let it go.... then gave a company with his friends in it @ Goldman a ton of business. Then told Goldman we will prop you up, then told Goldman we will give you money to buy financial institutions, then we will give them money to give you to prop them up. Then Goldman posts favorable signs on the street with the companies THEY OWN, OR ARE UNDERWRITING FOR, THEN GOLDMAN GETS TO KEEP ALL THE PROFITS, WHILE WALL STREET pumps up it's stock!- Everyone at Goldman gets to keep the money AND any one who owns Goldman Stock. - Who's money is this. The tax payers. - us, who needs the loans to survive? us? Who has to pay the banks 17-25% on interest for credit cards, and debt consolidation? - US? - WHO LOSES IN THE END- Us! - Is this a joke or what? - Who allowed this? - It all starts at the top with Mr. "O". - The PRES! - What a joke. And they gave him an award!
Posted by: [email protected] | October 13, 2009 at 06:43 AM
"This is to be expected and will remain a bullish sign as long as the number continues to expand."
What a fantastic market tool. Another indicator that is telling me where the market has been. If only my broker would allow me to buy yesterday.
Posted by: Toeser | October 13, 2009 at 09:26 AM
Stocks pushed higher without any real fundamentals?
Hmm.. I thought stock market is forward looking?
If you see the real fundamentals appearing right now, the stock market would have run higher still looking forward to even better fundamentals.
Posted by: WJ | October 18, 2009 at 11:53 AM
The market has always been psychological to a certain degree. There will always be a coat-tail-hanger effect navigating outcome. Reports like this influence for the better. That's a good thing.
Posted by: P.W. Dowdy | October 18, 2009 at 11:58 AM
A raising index requires someone is buying stocks. But who exactly? Someone here in Europe did some investigation and came up with who is not buying stocks on major European exchanges.
Private investors are not buying;
pension funds are not buying,but selling,
assurances are less buying than selling,
banks are equally buying and selling,
CEOs are selling their own companies' stocks far more than they buy,
so who drives stock prices?
Hedge funds are buying - not stocks,but options and index futures
US investment banks are buying -options and futures.
But WHO BUYS stocks???
A puzzle.
Posted by: H.D.Franke Dr. | October 18, 2009 at 01:59 PM