Chart of the Week

By John Del Vecchio and Brad Lamensdorf Household ownership of stocks has hit a new high. One might think this is a good thing as Americans have increasingly invested in the market to save and build wealth. It turns out to be a contrary indicator. Especially at new peaks. The chart below, courtesy of SentimenTrader,…

By John Del Vecchio and Brad Lamensdorf As the pandemic wanes and daily life quickly gets back to normal, corporations have been busy buying back their own stock. Just like the good old times. Not just normal buybacks. Record buybacks. This should be expected. Last year, buybacks and dividends were often suspended and now the…

By John Del Vecchio and Brad Lamensdorf Wealth investors are loaded to the gills with equities. This begs the question, how much more can they pile into stocks? As the chart from Bank of America shows, the equity allocation among private clients has broken out to new highs at 64.3%. This compares to the previous…

By John Del Vecchio and Brad Lamensdorf The market has been the little engine that could over the last year. After a nasty move down during the COVID hit, stocks have done nothing but gone up. Nearly every stock. Market breadth is now reaching extreme highs. Take a look at this chart courtesy of SentimenTrader.com…

By John Del Vecchio and Brad Lamensdorf Buying climaxes continue to jump, just hitting the highest level in year. A buying climax is when a stock makes a 52-week high but then closes down for the week. This is a sign of distribution. As the market inches higher, more and more distribution is occurring. Investors…