The markets are seeing all-time highs, and they're giving no signs of slowing down.
In fact, D.R Barton joined Fox Business Network to give the "skinny" on the stock market rally... and he's promising even more growth.
Backed by more than four centuries of data, here's what you can expect in the months to come...
Click here to watch, and see just how far the resurgence could go...
The markets are seeing all-time highs, and they're giving no signs of slowing down.
In fact, D.R Barton joined Fox Business Network to give the "skinny" on the stock market rally... and he's promising even more growth.
Backed by more than four centuries of data, here's what you can expect in the months to come...
Click here to watch, and see just how far the resurgence could go...
Investors and traders could be forgiven for calling this market downright boring, but the truth is, for technical guys like me, we're living through an unprecedented, historic moment.
You see, I looked all the way back to the Camelot days of John F. Kennedy nearly 55 years ago and failed to find another instance of range-bound, "tight" markets enduring for so long.
The mid-July, post Brexit run-up has given way to a mild pullback and... wait for it... another sideways box.
For more than two weeks, the S&P 500 has been stuck in an amazing, maddening range of less than 1%.
This is an almost unheard-of level of inaction.
In fact, I went back through 10 years of data and could not find any other occurrences of a two-week range that was this tight.
This is really strange. But the good news is, it can't last.
Here's what I think will happen...
The market's strength continued last week, with new all-time highs made in the Dow Jones Industrial Average and the S&P 500.
From a technical perspective, that's significant - but more for what it doesn't prove.
You see, through Wednesday, the Dow had made higher closes on nine straight days for just the seventh time in the last 36 years.
According to Nautilus Investment Research, the six months following each string of nine successive up closes in the Dow showed an average gain of 10.4% - with each of the six showing positive results (the smallest gain was 4.7%).
But here's the problem with that: First, this a very small sample size, so while this represents an interesting trend, it's a mistake to take this as conclusive proof. Second, with the U.S. election season vitriol blazing away, and global economic uncertainty abounding, you should take this quantitative analysis with a grain of salt.
Despite the strength of the post-Brexit "march to new all-time highs," the speed of the rise has slowed considerably, and the pullback we saw in yesterday's trading confirms that.
All this, and yet investors push the S&P 500 to record highs.
I don't know about you but I have never seen a more confusing and disturbing investment landscape in my 30 years in the business.
And the firefight is raging all around us...
The market is sending us decidedly mixed signals right now. We've had some welcome upward moves lately, notwithstanding a little halfhearted profit-taking yesterday.
Analysts all have different explanations for the buoyant markets - oil prices, the strong dollar, an uptick in dealmaking, and now even surging new home sales. Those are all to the good, but I think they're overestimating the importance of those factors.
Don't get me wrong - it's OK to get excited about the rally, because there are some constructive technical reasons to like it. Critically, lots of stocks in most sectors have come along for the ride.
But here's where those mixed signals I was talking about come in. The welcome upward moves just haven't been able to get the markets out of the "box" they've been stuck in for the past eight weeks or so. And, as you'll see, there's still a great deal of uncertainty about one sector in particular.
So I'm going to show you what my technical analysis reveals about how we can get "out" of the box, and where we'll likely land when we get there.
And then I'll recommend some profit plays to make right now...
The market has an admirable ability to completely disregard reality. Just look at the S&P 500's 2.3% gain last week.
We don't have that luxury, so I spent the last week grappling with it.
You see, I spoke on two panels at John Mauldin's Strategic Investment Conference 2016 in Dallas last week, each discussing the credit markets. Some of the best minds in the investment world were there, giving their views: David Rosenberg, Mark Yusko, Lacy Hunt, Charles Gave, Dr. Pippa Malmgren, David Zervos, Grant Williams, Niall Ferguson, Dr. Gary Shilling, Jim Grant, and of course our distinguished host himself, John Mauldin.
Now, like me, none of these individuals is a "consensus thinker" - each of them brings unique, out-of-the-box insights into markets that are infinitely more valuable than what is available in the mainstream financial press.
The food and entertainment at the Mauldin conference were wonderful. The outlook, considerably less so.
So today I'm going to tell you exactly what's got us so worried.
Last week the markets were on a teeter-totter - the same kind you saw on the playground as a kid. You were either going up or going down.
Now, picture that someone else intervened in your "ride" by pushing on one side or the other. That person has now directly influenced whether you went up or down.
With that image in mind, we can see what's happening in the markets right now.
What is pushing prices up right now are expectations that the U.S. Federal Reserve will continue to be "accommodative" and avoid raising interest rates.
This faith in the actions of central banks has put a mental "safety net" under the market for many traders and investors.
But that might not be a good thing this month. Here's why...
The markets swung more than 1,000 points in each direction over the course of trading yesterday. The chaos started in Asia and spread to the United States as the day went on.
That the markets plunged that far in the first place is a sure sign that panic is definitely setting in. I'd be lying if I said I didn't feel the angst just like you do. You're not alone.
So today, let's talk about how you do that and, as usual, take a quick look at three specific investments you can put to work immediately if the U.S. markets fall further or if China's markets have not yet bottomed.
When it comes to the stock market, it's not the "little dips" that are a concern, Money Morning Capital Wave Strategist Shah Gilani said Tuesday.
What is worrisome are the "black holes," and if and when we'll step into one.
With Goldman Sachs' $100 million loss Tuesday, and the Nasdaq shutting down for hours today, looks like we're already there...
Click on Shah's video for the full story.
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