Look around. Can you tell inflation is cooling? Not me.
That’s why when the Fed reported today that CPI (the Consumer Price Index) has cooled off, I don’t believe it.
But still, one thing people don’t realize is that the broad market is quietly making a new high.
Lots of people think when the market is up, it’s too late to buy. Not me.
Because when they say “buy low, sell high”, I don’t know what they mean.
I prefer to “buy high and sell higher”
High as in stocks making new 52 week highs.
But be careful, just because a stock is making new 52 week highs is not the only reason to buy it. But it’s a good starting point.
So if there is a Santa Claus rally, I don’t believe it’ll come from the “dogs of the Dow” (the beaten down stocks)
I believe the ones that will go higher are the ones that are already high now.
So look at stocks that are at new highs. And if you can identify a strong upward trend leading up to this, even better.
Trade well,
Jack Carter