Trend Signal Now: Look at how many New Lows

Friday, December 20, 2024

Did you see how many stocks made new lows this week?

It wasn't many.

When you look at how dramatic people have been about a few stocks selling off a little bit, you would think that an actual correction might be taking place in the market.

But if you thought that humans act logically, then you clearly don't know humans.

Irrational behavior is actually the only thing that the market guarantees. And you saw it again this week.

I mean, you didn't even get an expansion of stocks making new lows!

This was nothing.

All you have to do is go and count. You'll quickly see how the new 52-week lows list is almost non-existent. In fact, you saw fewer new 52-week lows on the NYSE this week than you did in early August.

But if you look even shorter-term, say new 3-month lows, you didn't seen any sort of expansion there either.

Look at the total new 3-month lows among Large-caps, Mid-caps and Small-caps.

Nothing...

And that's the thing right?

Mathematically, you cannot possibly have a bear market, or a correction of any kind, without the prices of stocks falling.

We know. It's just math.

So if we know that, then shouldn't we spend time counting how many stocks are actually falling in price?

That's just common sense to me. It's funny how others would rather just tell each other stories about recessions and crashes and michael saylors.

To each his own, I suppose.

I'd rather just count.

So with all that in mind, what are we doing about this "dip"? Are we buying this bizarre panic we're seeing in the middle of a bull market?

Yes. We are.

And we'll be discussing exactly what we're buying this upcoming Monday during our LIVE Video Conference Call. This is where we go over it all, identify trends, do deep dives into specific sectors and themes, and then drill down to very specific trade ideas that are actionable right now.

You're going to want to be there.

If you're not yet a Premium Member of ASC Research, you can CLICK HERE so you can join us on Monday's LIVE Conference Call, access all the trade ideas through our proprietary Rangefinder App, and receive all the daily premium research right in your inbox.

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See you in there!

JC Parets | Founder & Chief Market Strategist of All Star Charts

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