Yamada: Market Technicals Strong Though Record Margin Debt Spells Trouble

Jon Economy, Market Commentary

There’s no denying that 2017 has been a good year for investors, with most major asset classes showing gains for the year.
This time on Financial Sense Newshour, we spoke with Louise Yamada of LY Advisors about current conditions and whether she sees any signs of a market top or concerning developments.
Are We on Track for Longest Recovery?
Everything looks to be in alignment and going in one direction, and we’re already in the ninth year of this current bull market.
The cumulative advance-decline line has been confirming the rally, Yamada noted. It has been hitting new highs along with the major indexes.
Minimal Signs of Stress
On the Dow, there were some prior concerns because the Transports had been lagging the Industrials, but last week they experienced a strong breakout.
If you look at the Nasdaq, it’s behavior looks just like the Dow, consisting of a stepping stone pattern with higher lows and higher highs.

This post was published at FinancialSense on 12/14/2017.