Like the phrase, “It’s the cat’s pajamas,” 23 Skidoo was a national fad expression from a year or two ago (Ok, about 90 years ago). It is relevant today because for the first time in recorded history (and for the most part pretty meticulous records have been kept for stock market-related facts) the Dow Jones Industrial Average reached 23,000. You can see from the chart below that performance for the Dow has been stratospheric. The other major averages having been keeping on-track as well.
What is at least as impressive is that today’s meeting of the 23,000 mark is the sixth 1,000 point milestone reached in the past year! On the fourth of November last year, just 4 days before the election, the Dow was below 18,000. It was only 76 days ago the everyone was saying, Wow! 22,000 for the Dow!
Whether or not the 23,000 level is sustainable only time will tell. At midday, the market has backed off a little, but the threshold was broached and the record is on the books at 23,002.2. Let’s hope that the term 23 Skidoo does not hold up to its original meaning of “let’s get the heck outta here.” (See The Technical Tea Leaves below.)
Strategic Metals (REMX) continues to lead the Relative Strength pack, followed by Lithium, (LI), Copper (JJC), Semiconductors (SOXX), and Brazil (EWZ). Also-rans include Mexico (EWW), Retail (XRT), Telecommunications (IYZ), Canadian Energy (ENY), and Consumer Staples (XLP).
The Technical Tea Leaves are not as reassuring as the new highs would suggest: Intraday high prices of the market have increased to a 21 day high. Never the less, the advance/decline oscillator is negative. This unusual event is read as a very strong bearish signal that is often followed by a downward price movement.
Intraday high prices of the market have increased to a 21 day high. But the up/down volume oscillator if negative. In this uptrending market, this is taken as a very strong bearish signal that is often followed by downward price movements.
The new high/new low indicator has reversed to the downside. This is a reliable bearish signal that is often followed by a downward price movement. In this uptrending market a trend reversal could occur in the near future.