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Beware! There’s Trouble Simmering Below Surface of Record Nasdaq Index Highs

By:

The Founder & Portfolio Manager Of Active Alts, Principal & Co-Manager Of The Advisorshares Ranger Equity Bear ETF

There’s Trouble Simmering Below Surface of  Record Nasdaq Index Highs.  The Nasdaq index record highs are being propelled by a decreasing number of stocks that compose the index. That means things are not nearly as healthy for Nasdaq stocks in general as the record highs would suggest, says Jason Goepfert of SentimenTrader. Put another way, notes Mark Minervini, “the Nasdaq composite index is weak.”  In fact the number of stocks composing the index trading above their 200-day moving average has fallen below 50%. And that historically results in bearish returns for the Nasdaq over the following three-to-six months, (see chart) .

However, most of these dates were overlaps. So if we exclude overlapping signals over the past month…

Originally Posted on November 1, 2019 – Beware! There’s Trouble Simmering Below Surface of  Record Nasdaq Index Highs

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