As a tax day treat, the investor class was gifted new all-time highs for the S&P 500 and the Nasdaq exchange.
Caveat emptor.
The market rallied on thinner volume; there was zero breadth, creating a prime trading environment for Shadow Stocks. In a market there are a lot of cherry-picking stock traders huffing on price spikes!
Just 12 out of 500 stocks hit new 52-week highs yesterday:
Only 12 of the S&P 500 stocks hit new highs during yesterday’s record setting rally, but they were enough to send the index to a 7,022 close. (Source: Brown Technical Insights)
We’ll do the math for you: a mere 2.4% of all the stocks on the market shot up to achieve yesterday’s record close.
Historically, we saw a similar trading setup – select new highs on light volume – leading up to the dot-com bubble’s peak in late 1999 and early 2000.
The unique trading environment in the indexes piqued our curiosity. We put a team of researchers on task. Today, we’re releasing the final report. Click on the Shadow Stocks report below. We forecast you’ll be as intrigued by the research results as we were.
Individual investors need to be cautious and strategic in this market.
That said, some spectacular gains are roiling beneath the otherwise historic numbers on the indices. Focus on themes that are working right now, be mindful of valuations, and keep an eye out for opportunities to take profits quickly. Our report suggests ways to do that and includes select, individual, capital gain opportunities we’ve already identified.
Come on along for the ride!
~ Addison
P.S. This week on Grey Swan Live! we’re showcasing our latest research on Shadow Stocks – volatile stocks that move rapidly up and down beneath the surface of the calm indexes.
Earnings season is a ripe time for cherry-picking stocks. Along with the research, we are launching an upgrade to your Grey Swan forecast emails that will include up to 5 stock or trade recommendations a week.
To kick it off, we’re going to give you three stocks free of charge. Gratis. On the house. The research is excellent and the upgraded Grey Swan Pro will be worth your time to consider. Take a look here.
