Image Source: PexelsLast week was a great one in beautiful Sonoma. Having the team together and inviting some smart friends to join us for the conversations was amazing. Meanwhile, we’ve been seeing relentless buying pressure in the stock market, writes JC Parets, founder of AllStarCharts.com.There were so many good ideas being passed around and new strategies that we’re going to work on that it exceeded all expectations. And mine were high. Meanwhile, look at names like AstraZeneca PLC (AZN) making new all-time highs. Or Uber Technologies Inc. (UBER) retesting former highs from the prior cycle.In December, we saw the highest amount of stocks hitting new 20-day highs that we had seen in years. This historically comes near the beginning of big market moves higher, not near the end.
And to me, it’s really just about thinking through what this actually means. Relentless buying pressure, to the degree that we saw in Q4 last year, is evidence of strong underlying demand for stocks. So much so, that historically this strength continues for at least another year.Meanwhile, look at the ripper in yields. After a 40-year drawdown, the 50-week rate of change for US 30-year yields is like nothing we’ve ever seen before.
About the Author
JC Parets is the founder of All Star Charts and one of the most widely followed technical analysts in the world. All Star Charts is a research platform for both professional and retail investors, covering US and international stocks, interest rates, commodities, and forex markets.In 2017, Mr. Parets launched “Technical Analysis Radio,” a podcast dedicated to technical analysis and the technicians who practice it. He specializes in finding the most opportunistic risk vs. reward propositions, while at the same time bringing a top/down approach to the marketplace. More By This Author:General Electric: The Re-Constituted And Re-Invigorated Dividend PlaySLV And SIL: Two Ways To Play Boom In Silver PricesOn Holding AG: An Up-And-Coming Athletic Shoe Company With Attractive Growth
