fbpx

 

It’s incredible, but a simple google search will still return a multitude of daily articles by top outlets on why the crash is imminent.

I mean today, these talking heads see a small pullback and make it seem as if this might be a top.

Same people who called the top in 2014 and then in 2015 and surely in 2016 and in every year that followed are calling it once more.

The problem here is that they have no data to back up why this can be a top.

How dare I be skeptical?

After all I’m no analyst, I’m just a simple data guy, what do I know…

Well, for one thing, I’m pretty certain that new all-time highs are NOT a characteristic of a downtrend. 

If you scroll back the charts and check the worst crashes and bear markets there’s one thing you surely won’t find – it’s all time highs. 

Yet, the world’s most important stock index just made exactly that!

New Highs Does Not Mean The Top Is Near

Here’s a fresh look at the Dow Jones Industrial Average:

The second oldest and one of most widely followed indices in the world has just updated its all-time high record.

I think the question of who do I believe more – an average talking head or the $8.4 trillion index tracking the greatest companies ever created – is rhetorical. 

This breakout also follows closely and officially confirms the recent all-time high achieved by its older brother – Dow Jones Transportation Average:

Now, I’m no analyst or advisor but if you are one of the people believing a bear market starts with a new high, I’m not sure how to help you.

And the Dow’s aren’t alone in hitting clear skies.

In fact, there’s great strength all around the world – even in the perpetually locked down Europe.

Here’s the Kingdom of Netherlands, for example:

A bubble, some would say?

Well, take a closer look and note how all these charts are breaking out of multi-year bases.

Some of them have done nothing or actually been down over the past few years, NOT up – this is anything BUT a bubble. 

Look, you don’t have to believe me, but the fact remains – I’ve been vocally bullish when nobody would even try to listen.

I’ll remain so as long as the data tells me so.

You can go fight these trends if you wish so. 

Or, you can join me in the Data Driver and learn how to ride ‘em up!

 

Author:
JC Parets

Leave your comment