Wait for a Monthly Close Above Dow 18,500.
That may come at the end of this month, or next, but there is no question in my mind that longer-term the Dow Industrials are headed to 31,000 perhaps even higher.
Moreover, if you think you’ve missed out on anything, think again. As I’ve pointed out previously …
è 30 percent of the stocks in the Russell 3,000 — a more accurate picture of the total of publicly-traded U.S. stocks — are down for the year, some as much as 87 percent.
è In addition, although the Dow Industrials have broken above my line in the sand, 18,500, it has not done so on a monthly closing basis. Plus …
è The ratio of advancing stocks versus declining stocks during the breakout and aftermath of the election was an anemic 8-to-1. Not the characteristics of a real, solid, all-encompassing breakout.
Originally, a weekly close above 18,500 would have been a good breakout signal. But with the anemic number of stocks actually leading the charge, a monthly close above 18,500 would provide a more bullish buy signal.
Not to worry. I will not let the next bull market move higher in U.S. equities get away from you. So remain patient for now, but keep an eye on your inbox for flash alert updates and recommendations.
