[“US stocks hit new highs for innovation, yet 30 stocks dropped to new lows?” Last time this happened was in 1999🔥😱】
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On Monday, US stocks looked great on the surface. The Nasdaq rose 2% and set another record high. The S&P 500 gained 1.5%, just under 1% away from its all-time high. This year, the S&P 500 is up 13%. In the past six months, it has even risen 19%. The screen is everywhere green.📈
But underneath, there’s a glaring number. Within the S&P 500, 30 stocks hit 52-week new lows. On the same day, only 7 stocks reached new highs. The count of new lows is far more than new highs. Usually, these two numbers are the other way around. In normal circumstances, an index record high shouldn’t look like this.📉
This combination happened last on December 21, 1999. Back then, the Nasdaq was charging toward the peak of the internet bubble. A few months later, the bubble burst. Going even further back, the previous instance was July 23, 1929—only a short time remained before the big crash. Both times weren’t exactly good memories.⚠️
Why can the index still rise? Because only a handful of stocks are doing the heavy lifting. Communication services, technology, and discretionary consumption are holding things up. Other sectors are still 4% to 7% away from their recent highs. Money is squeezing into just a few names. The market looks lively, but in reality it’s quite narrow.🎯
On the other side, risk assets also haven’t been idle. Bitcoin for the first time broke above $87,000. This is the first time since the start of January this year. Ethereum rose 6% in a day, returning to $2,770. BNB also reclaimed the $800 level. Money is still searching for places to go.🚀
Whether it can sustain depends, really, on three conditions. The war in the Middle East is still ongoing. Energy prices can’t be brought down. The Fed just added 25 basis points in September. The tightening hand hasn’t loosened yet. If these three don’t ease, it will be hard for new highs to hold.🌍
📌 The index is surging to higher ground, but the foundation is getting thinner—what a narrow market fears most is nobody stepping in to take the baton.
At this point, would you dare to add to your position, or would you retreat first? Let’s discuss in the comments.
Group chat: 📲 加入X先生的粉丝群聊
On Monday, US stocks looked great on the surface. The Nasdaq rose 2% and set another record high. The S&P 500 gained 1.5%, just under 1% away from its all-time high. This year, the S&P 500 is up 13%. In the past six months, it has even risen 19%. The screen is everywhere green.📈
But underneath, there’s a glaring number. Within the S&P 500, 30 stocks hit 52-week new lows. On the same day, only 7 stocks reached new highs. The count of new lows is far more than new highs. Usually, these two numbers are the other way around. In normal circumstances, an index record high shouldn’t look like this.📉
This combination happened last on December 21, 1999. Back then, the Nasdaq was charging toward the peak of the internet bubble. A few months later, the bubble burst. Going even further back, the previous instance was July 23, 1929—only a short time remained before the big crash. Both times weren’t exactly good memories.⚠️
Why can the index still rise? Because only a handful of stocks are doing the heavy lifting. Communication services, technology, and discretionary consumption are holding things up. Other sectors are still 4% to 7% away from their recent highs. Money is squeezing into just a few names. The market looks lively, but in reality it’s quite narrow.🎯
On the other side, risk assets also haven’t been idle. Bitcoin for the first time broke above $87,000. This is the first time since the start of January this year. Ethereum rose 6% in a day, returning to $2,770. BNB also reclaimed the $800 level. Money is still searching for places to go.🚀
Whether it can sustain depends, really, on three conditions. The war in the Middle East is still ongoing. Energy prices can’t be brought down. The Fed just added 25 basis points in September. The tightening hand hasn’t loosened yet. If these three don’t ease, it will be hard for new highs to hold.🌍
📌 The index is surging to higher ground, but the foundation is getting thinner—what a narrow market fears most is nobody stepping in to take the baton.
At this point, would you dare to add to your position, or would you retreat first? Let’s discuss in the comments.
