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Need Bulls to Have a Bull Market

Need Bulls to Have a Bull Market

OVERVIEW   U.S. stocks were in the red last week, with all three major indices closing lower. The S&P 500 fell 1.11%, the Dow declined 0.17%, and the Nasdaq dropped 2.41%. Foreign stocks were down as well. Developed country stocks declined 1.59%, and emerging...

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U-Turn

U-Turn

  This week’s featured chart shows that a key indicator of the economy’s strength took a sharp U-turn last month. The ISM Composite indicator rose to 51.3% in January, up from the previous month’s reading of 48.8%. According to the indicator above, this is good...

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Another Sign Inflation Has Peaked

Another Sign Inflation Has Peaked

  An important commodity-based inflation indicator that we highlighted a few months back recently fell out of its high negative zone—a sign that inflation has likely peaked and that stock market returns could be stronger going forward. This specific indicator...

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Balancing the Risks

Balancing the Risks

OVERVIEW   U.S. stocks were mixed last week, as the S&P 500 climbed 1.62% and the Nasdaq surged 3.31%, but the Dow fell about 0.15%. Growth stocks lead the rally, rising roughly 2.8%, versus a 1% gain for value stocks. Small-cap stocks outperformed, climbing...

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Call It a Bull

Call It a Bull

  The stock market is acting like it’s in the early stages of a bull market. That’s the message from the Early Cycle Composite, shown on the chart above. This chart looks at the stocks and sectors that tend to lead in the early stages of a bull market—call these...

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McClellan Summation Index

McClellan Summation Index

  Sometimes the stock market is quiet, and there isn’t a whole lot of price movement in either direction. But other times, the market gets excited and surges powerfully in a particular direction. We call this sharp shift in sentiment a “thrust.” One of our...

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Gathering Steam

Gathering Steam

OVERVIEW   U.S. stocks rallied last week, with the S&P 500 climbing 2.47%. The Dow Jones Industrial Average rose 1.81%, and the Nasdaq Composite surged 4.32%. Growth stocks were out in front of the rally, swelling 3.34% for the week, whereas value stocks rose...

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