Stocks are at an historic high. Bullish?

The Nasdaq Composite is the weakest of the three indexes as it is the closest to its sideways prices (starting in late 2014. It is just 100 points higher than its previous all-time 2000 high. The fundamentals have not changed; they’re are bad as ever. Let’s start with 26 times average earnings when 14 is closer to the long-term average. Business sales have been dropping while business inventories have been growing for a 1.4 ratio. There are bubbles everywhere one looks, in just about every market. Stocks, government bonds, corporate bonds and even junk bonds are all at historic highs.

 

My relative-strength stock sector table shows contraction in the Technology, Consumer Staples, and Cyclical  groups. Only the Financial group grew.  The Basic Materials sector fell in August for the first time since May.  The Real Estate sector fell 3% in August, probably pulling down the Building Sector by 1.6%.

 

Here’s my relative-strength chart of the Real Estate Sector:
real_estate

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