Today's positive trade, start to finish, offers an opportunity to put an exclamation point on that negative take toward new 52-week highs registering on the NYSE put forward here over the past couple weeks...
At present the NYSE Composite index trades a minuscule 2% below its best intra-day print since March '09 bottom (which, itself, is well over 70% above that bottom).
Then, at the conclusion of today's trade, there were more than three NYSE-listed issues advancing for every issue that declined on the day. Fully 74% of NYSE issues traded higher today!
Yet the number of issues hitting new 52-week highs not only fell, but registered only about one-third their number of a week ago?
If a growing bullish interest were underlying the bid for U.S. equities, then should not those issues leading the way higher maintain a relatively constant presence, particularly on a day like today?
Likewise, degradation in the NYSE high-low differential, April versus late-March — this while the NYSE Composite traded at a higher level — reveals leadership is more rapidly fading than sustaining its charge. One wonders if this is something like lemmings heading for cliff's edge recognizing their approaching peril...
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
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