Even as stocks hit record highs, one technical analyst says that the rally is not all it’s cracked up to be.
By Friday’s market close, the Dow Jones Industrial Average closed a five-day streak of record highs, while the S&P 500 Index posted a four-day record of closing highs. Many investors flocked to stocks during the rally, while big bank earnings and strong retail sales data drove stocks higher. However, Cornerstone Macro’s Carter Worth says that equity performance has actually been rather disappointing.
‘I think the issue here is that we know on an absolute basis, one has nothing to show for having been in the market now since May of a year ago,’ said Worth recently on CNBC’s ‘Fast Money.’
Investors can get bullish at highs, and bearish at lows, said Worth. That said, ‘nothing’s happened …in fact [for ]a very long time on a risk-adjusted basis,’ citing his chart work showing year-over-year change for key assets.
This post was published at David Stockmans Contra Corner By Rebecca Ungarino, CNBC ‘ July 18, 2016.
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