Stock market bulls got something to cheer about last week. Heritage Capital President Paul Schatz noted that New York Stock Exchange’s advance/decline line set a new all-time high this week. The indicator counts the number of stocks rising on a particular day and subtracts the number of stocks falling and plots the result over time. “When the major stock market indices make new highs but the NYSE A/D Line does not, that’s where bulls should begin to worry,” Schatz writes, adding that “the exact opposite is now happening,” which he said was “typically a good sign for further strength in stocks over the medium-term.” Still, he added the obligatory caution that past performance is no guarantee of future results.
Past Performance is No Guarantee of Future Results
| May 14, 2018