I am planning on a number of timely year-end financial and tax strategy blogs next month. I am always amazed at how few financial advisors do their jobs properly and look out for clients’ best interests as year-end approaches. Now is not the time to get lazy.The strong pre-Thanksgiving seasonal trend looks to be a bit mitigated this year. The markets remain on solid footing, but we didn’t have any weakness to set it up better.The chart below is a familiar one. The S&P 500 is in the upper box and the NYSE Advance/Decline Line is in the lower box. Forget about the name. The lower box just measures participation. It is supposed to lead or follow the stock market. It is very hard for the bears to argue that the market isn’t well supported with the line at or close to all-time highs. Stick with the theme of buying weakness.(Click on image to enlarge)
Further supporting the idea of broad participation, let’s look at the chart below. In the lower box you can see the percentage of NYSE stocks in uptrends or bull markets. Bull markets don’t end with 71% of stocks looking strong. Bears lose that argument. Stick with the theme and buy weakness.(Click on image to enlarge)
What about my favorite canary in the coal mine, high yield bonds? Let’s look at the junk sector below. Once again, bull markets don’t end with high yield at or close to all-time highs. Bears are wrong again. My next upside projection of 47,000 on the Dow remains in sight for 2025. Stick with the theme of buying weakness.(Click on image to enlarge)
Don’t get me wrong. All is not hunky dory. I have concerns for 2025. It’s just very difficult to get a real decline going from all-time highs, especially this late in the year.I don’t know if I will be publishing on Friday. I was hoping to be on snow for day one, but Ma Nature definitely isn’t cooperating. I still may head up north to dump a load of stuff for the season.More By This Author:Tailwinds Are HereRussia Threatens Nukes – Nvidia The FocusPost-Election Market Analysis Of Winners And Losers – What To Buy And Avoid
Bears Still Wrong – 47,000 Up Next
