Signs of a Bull Market?

There’s a saying: “In bull markets, stocks don’t sell off on bad news.”

I mention this because the latest jobs data is out and it’s horrific.

Another 4.4. million Americans have filed for unemployment, bringing the total number of new unemployment cases to 26 million.

These are DEPRESSION-type numbers. And yet, stocks are holding up.

The S&P 500 last peaked on April 17, 2020. Despite a rash of horrific economic data, the index has barely fallen over 5%.

Stocks are

As investors, we have to trade the markets as they are – not as we wish they were. And the market is holding up shockingly well given what’s happening in the world.

Remember: “In bull markets, stocks don’t sell off on bad news.”

What’s even more shocking is the fact that ENERGY stocks are UP more than the broader market this month.

The Unlikely Sector Gaining Major Momentum

That’s not a typo. The Energy ETF (XLE) is up 16% while the S&P 500 is up 8% in April. And this is happening at a time when oil prices dropped to NEGATIVE $40!

Energy is outperforming

This again suggests we are entering a bull market. In bull markets, stocks don’t sell off on bad news.

Also, if you compare the performance of the top performing sector (tech) to the worst performing sector (energy), you see what looks like a bottoming process.

Energy is EnergyIsOutperforming

Again, I realize this sounds crazy, but we have to trade the markets as they are, not as we wish they were. And the markets are suggesting a new bull market is starting and that energy might be a great place to invest.

I’ll be digging in deeper to this in the coming days.

Best Regards,

Graham Summers
Editor, Money & Crisis

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Graham Summers

Editor Graham Summers has spent the last 15 years building a reputation as one of the most sought after and highly respected investment strategists on the planet. His work has been read and quoted by former Presidential advisors, award-winning institutional analysts, U.S. Senators, and more. He’s one of the few analysts on the planet to...

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