Nasdaq pulling S&P 500 to its highs


We hope Everyone is enjoying their summer, and we’re hoping it gets a lot better.

As we said back in June, the Nasdaq, the leading market broke out to new highs  little over a month ago.

Looking below- the Nasdaq broke out, to the take a breather and consolidate at old highs, this is incredibly positive market action.

During this technical move we are seeing companies like bank of America make 7bl in net profit and google with fabulous results today pushing the stock to new highs.

Source: Bloomberg


Currently the S&P 500 the broad market continues to plug away higher and looks like it will join the Nasdaq on a move to new records.  The S&P 500 has less than a 2% move higher to reach its all time highs- we think it will reach these levels shortly.

Source: Bloomberg

If we break through this old high, we think there is a good chance we are going to have another move to all time highs in markets, given this secular bull market is not over, and we don’t know when the moves will occur, this is very positive market action.  It’s been 6 months since the market has moved through record highs.

We are only in the early innings of this quarterly earnings season and it so far things are looking quite good.

Enjoy your summer, things are looking very good here, and we’re available to chat if you have any questions.


Market Looks Stronger, Breaks Out to New Highs

We may have a leg higher…

There has been a lot of slogging since the correction in January as the markets have been range bound. We have not had anything truly meaningful to report, other than to say things are getting better.

This is the first good piece of news to report and it is that the Nasdaq, the technology market with leading stocks and the sector leading us forward has seemingly broken out to new highs. This is important, we should always watch what the leaders do, and the leaders have broken out to new highs.

Nasdaq breaks out above past peak:

Source: Bloomberg

I want to point out something extremely important – the media is constantly scaring investors on the tariff struggles and trade wars.

This is US Steel, a beneficiary of the tariffs and trade war. The company is only 7 billion in size and is not leading higher.

Source: Bloomberg

Conversely here is 800-billion-dollar value Amazon, continuously innovating, no need for trade advantages, and leading markets higher.

Source: Bloomberg

We do not have any meaningful exposure to stocks affected directly by trade wars and NAFTA. It is important to get beyond the headlines and remember things are pretty good.

We added Google and TenCent to our tech names over this recent pullback and have increased exposure to upside in technology stocks.

Fingers crossed for a great summer market.


Chris, Rick, Steve and Sophia
The Stuchberry Group