Still Mixed

October 17, 2017 | Tim Fisher


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The indexes have been hitting new highs on almost a daily basis for the past few weeks

Still mixed. The indexes have been hitting new highs on almost a daily basis for the past few weeks, but not all stocks are participating on the upside. Yesterday was a good example, as the indexes were solidly higher, but the number of advancing and declining stocks was close to equal. Quite a number of stocks are having their own corrections during this period of strength, which makes it challenging for the average portfolio to achieve the same kind of performance that is being driven by a lower number of larger companies. We do not see this difference between the bullish and bearish stock trends as being an indication of trouble for the market, but is does illustrate the importance of avoiding those areas of the market that are not performing well, while also keeping an eye out for change in those stocks that have made unusually large moves to the upside this year.