Historically, the US markets have seen the emergence of trends around October and into the latter part of the year. It appears that this cycle may not have failed us this year, as with only 2 days of the month left, we have seen a record new-all time high created in the S&P 500.
Price gapped up when the market opened on Monday, opening 10 points above Friday's closing price.
What tends to happen after gaps in the market is that price pulls back to fill the space of the gap, however, if the bulls gain enough momentum we may just see price continue its ascent without looking back.
A continuation of the bull trend will signal good times ahead for many investors that have a basket of strong performing stocks, which include the likes of Apple Inc (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), who have seen a positive growth so far in 2019. It is important to know how to pick strong stocks in a trending market.
The chart above clearly highlights the growth in the S&P 500 over the last 10 years.
Price has climbed 348% during this period, emphasising how strong the market currently is.
Price is now back above the $3,000 round number which has been an area of psychological resistance. With price trading above this level, traders may no longer deem $3,000 as being an expensive price for this index. Should this be the case, then we may see price move towards the next round number, $4,000.
It may be some way to go before then, but as we have seen price go from $1,000 to $2,000 between 2009 & 2014, then from $2,000 to $3,000 between 2014 & 2019, it is easier to see the possibility of price moving to $4000 coming into fruition.
Smart investors will now be preparing themselves to take positions on the strongest performing stocks as history has shown there will be plenty of profit on the table for those who know how to accumulate it.
We will keep you all posted with stocks presenting the best investment opportunities.
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