The relentless, steady, monotonous levitation to all time highs keeps chugging along: while last week saw the S&P experience its first 1% intraday move in nearly two months, there has yet to be a comparable move on the downside. As Deutsche Bank notes, pull backs of 3-5% in the S&P 500 are typical every 2 to 3 months historically. The last such pull back occurred just prior to the US presidential election.
Just to clarify - Trump said nothing new at all - and added no detail, another major US retailer blew up, 'hard data' disappointed (soft surveys gained), Fed speakers were the most hawkish since Volcker, and The Dow soars 350 points to top 21,100... makes perfect sense...
Below looks at the Bio-Tech ETF XBI since 2012. The chart reflects that over the past 5-years the S&P had done very well, as it is up 70%. Over the same time frame XBI is up 160%, gaining more than 100% more than the broad markets
For the latest glimpse of the euphoria in the equity market, look no further than the Snap(chat) IPO, whose order book closes at noon today and is expected to price tomorrow, March 1, after the close. While the initial price range was presented as $14-16, according to Bloomberg orders for the public offering are concentrating in the $17-18 range, well above the high end of the range.
Submitted by Lance Roberts via RealInvestmentAdvice.com,
Visualizing 10-Reasons For Caution
Just recently, David Rosenberg in a recent research note, laid out 10-reasons to be cautious in the market. I thought it would be useful to look at each of these in a visual form to get a better idea of what he is addressing.
The obvious reason to look at these indicators is that market records are records for a reason. As I wrote previously: