New highs abound
The market saw an astonishing number of new highs on Friday. Are we approaching a correction?
Friday was a new-high bonanza, according to stock market blogger Chris Perruna. The 634 new highs on the NYSE that day were more than any seen in years.
There has only been one day with more new highs, Perruna writes. That would be Oct. 11, 1982, when 653 new highs materialized.
What to take away from this? Yes, we are in an uptrend, Perruna writes. And what goes up . . . well, you know the rest. Are we going to see a correction? Time to look at some good shorts?
How long can this market sustain higher stock prices based on faulty growth? You can only take so many cash advances on your credit cards without paying before they cut off your borrowing capacity. Maybe I have it all wrong, but I am concerned long term. Short term, the market is higher unless it says otherwise.
Let's turn to Bloomberg for a counter idea. U.S. stocks are still the cheapest in two decades, even after this rally, the news service reports.
Post continues after video:
"Income is beating analysts’ estimates by 22% in the first quarter, making investors even more bullish that the rally will continue after the index climbed 79% since March 2009," Bloomberg writes.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.