The cumulative new-highs-minus-new-lows line notched a fresh record for roughly the sixteenth straight session, even as MA breadth stayed inside its recent range.
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The larger $4B operations don't start until September 9. Nothing has been bought at the new size yet. We think that gap between announcement and execution is where the opportunity in financials sits.
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Breadth got smoked Thursday β 10-day MA breadth -9.04pp to 38.3%, every MA line red.
But cumulative New Highs-New Lows held its 3/6/12mo record at 189,295 (13 straight sessions), just flat instead of climbing: 96 new highs, 96 new lows on the day.
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New highs beat new lows by 90 today β a sharp reversal after the spread had shrunk to just 5 the prior session, and the twelfth straight 3/6/12-month cumulative high.
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Breadth keeps mostly falling for a second day while cumulative new highs minus new lows notch an 11th straight record on the thinnest daily gain of the run.
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Market internals, Aug 14.
9th straight record in new highs minus new lows β and the increment behind it went +158 β +89.
Records are getting cheaper. Breadth is still broad, it's just no longer accelerating.
Nothing else fired: no Hindenburg, no 90% day.
August and September are historically the two worst months of the year for stocks. We're not telling you that to scare you. We're telling you because what comes next is the whole thesis.
https://t.co/tSLL3d3t4d