The Nasdaq 100 closed at its highest weekly level in history on Friday. This happened despite last week's dramatic headlines suggesting otherwise. That development does not signal impending doom.
The Tale of the Tape on Monday confirms what the data has been showing. We remain in a bull market.
Some cautionary money flows have emerged over the past few weeks in the near term. The longer-term picture has not changed. Thinking across multiple timeframes remains one of the most valuable tools available to traders.
Healthcare and utilities led the one-week performance over recent weeks. Both sectors typically suggest caution. The market experienced volatility last week with some intraday discomfort. The market appears to have digested these concerns successfully.
Real estate (XLRE) now tops the one-week leaderboard. This challenges the narrative about an imminent real estate crash that commentators have predicted for years. I have maintained a bullish stance on bonds throughout this year in my daily TheoTrade sessions. The real estate sector is finally responding to the prospect of lower interest rates.
Utilities (XLU) continue to lead at the 30-day interval. I expect that position to reshuffle this week.
The bigger picture shows technology leading year-to-date performance while communications lead over the one-year timeframe. These patterns signal bull market conditions. Longer-term trends carry more power than shorter-term trends. This principle guides how I read the markets.
I'll keep you in the loop.
Talk soon,
-Gianni