The Stock Market Is Setting Records In Levitation

Not only is The S&P 500 at its most overbought in its history...


But as Dana Lyons'  exposes below, the stock market is scoring new highs at the fastest clip in history.

In our habitation within the investment-based social media realm, we have noticed a ongoing discussion between market observers related to the present stock rally.

On the one hand, there is a loud chorus from folks (likely many of whom are frustrated non-participants in the rally) pointing out the unusual, and perhaps inorganic, nature of the incessant rally.

On the other hand, you have the assured (condescending?) reminders from the other side (i.e., folks “killing it” at the moment) that an upward trajectory is the “normal” course of action for stocks, historically speaking. So which contingent is correct? They both are, to an extent.

Yes, it has been far more typical for stocks to rise than fall over the past 100-plus years. Thus, we should not be surprised by a rally, even in the face of elevated valuations, sentiment, etc. However, an unwillingness to acknowledge the noteworthy, even historic, nature of the current rally, would be an indication of either willful denial or potentially harmful ignorance.

This week, we take a look at some of the ways in which our current rally is truly unique from a broad historical basis. Today, we note the torrid pace at which the stock market is racking up new 52-week highs. Specifically, the Dow Jones Industrial Average (DJIA) is in the midst of a historic run of new highs. Over the past 100 days, the index has scored no fewer than 46 new 52-week highs. That is the most new highs the DJIA has ever accumulated over a 100-day stretch.



This new record surpasses the former mark of 45 set in 1954. And looking back over the last 100-plus years, there have now been just 14 unique occasions with even 35 new highs over a 100-year span.

So will the new highs continue from here – or is there nowhere to go but down at this point? Well, we’re not going to pretend that a new high is a bad thing. In fact, it’s about the most bullish thing a security or index can do – no resistance at all-time highs, you know. Furthermore, the momentum often generated by moves to new highs can be a powerful and (at least, temporarily) persisting phenomenon. That is, until the final high of the run. Obviously one high will eventually mark the top and the upward momentum will cease.

Are we at that point now? Are stocks going to come crashing back to earth – or can the market continue its levitation act a little longer?

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In a Premium Post at The Lyons Share, we take a quantitative look at previous prolific streaks of new highs to see what transpired afterward. If you are interested in the Premium version of our charts and research, check out “all-access” service, The Lyons Share. You can follow our investment process and posture every day — including insights into what we’re looking to buy and sell and when. Thanks for reading!


Oracle of Kypseli BullyBearish Sun, 01/28/2018 - 07:22 Permalink

It will not take long to pop. Car loans are now 7 years and most trade ins are underwater, mortgages in Europe, India and several other countries are now 40 years. This will not produce escape velocity, it would create debt slaves who have no more equity to put down. One loose thread and the sweater will unravel with gravity acceleration.

The quadrillion of derivatives are out of the public  from  the conversation, but brewing, soon to overflow.

The only parachute will be gold and silver. 

Watch out mates.

In reply to by BullyBearish

D.r. Funk J S Bach Sat, 01/27/2018 - 17:44 Permalink

That's just not correct. You're not processing the current and complete context.

Qe and fed balance sheet etc etc have been on-the-other-side of pumping for 12-18 months. [yes boj and the standard bs manipulation is there yes but the general concept that Qe is still an active intraday daily factor C'Mon]

What is occurring? The obvious accelerated-convergence over the heads of the losing power structure (election'16) and/or globalist-order and/or deepstate faction. The trapping and cornering of the circle of names Podesta Clinton Comey Strzock etc]

The index surges are so-anomalous and so-suggestive of forced programming, in which that prior admin did most likely have control of the indexes, of which that backdrop did-not change on Nov. 9, can you not see it's at least fairly plausible they're parabolic jacking everything more and more, magically, and it gets really more and more closer to the squeezing of the criminality, on them?

Get it?

In reply to by J S Bach

GreatUncle Sat, 01/27/2018 - 15:54 Permalink

So the CB inflates the economy the desired 2% or tries too ...

Problem is 99% are not longer able to tap into the inflated value % by worth.

Can you see it? ... The wealthiest are being projected to atmospheric levels of wealth where everybody else is forced to stand still like squeezing toothpaste out of a tube.

Until the CB is forced to stop by a violent revolt this will not be stopped.


gatorengineer Sat, 01/27/2018 - 16:08 Permalink

Its crashing upward, which if you think about it makes perfect sense......  where else could all of that printed money go.  Then one day someone will realize that the emporer has no close and 40T or so will vanish in a poof...(no I dont mean into Lindsay Graham).

abgary1 Sat, 01/27/2018 - 16:17 Permalink

Weak dollar, low interest rates, reduced corp. taxes, repatriation of corp. capital and the reduction of the Fed. balance sheet seem like some of the reasons for capital flowing into the equity markets.

Are we at a top? Heck if I know.

coast1 Sat, 01/27/2018 - 16:48 Permalink

credit card balances all time card defaults all time loans 1.1 trillion, food stamps, labor loans all time insurance all time high...everything is fine

CatInTheHat Sat, 01/27/2018 - 16:56 Permalink

All of this is ABNORMAL to say the least.

We are currently observing the highest transfer of wealth from the bottom to the top. 

And then all of this will cease leaving the bottom with nothing.

I read an article recently that said by June a one world government will be implemented out if Brussels. 

Is that, in fact what we are witnessing?

When the bottom finds out what the top is doing, and it will, via a major crash, there WILL be revolt.

PGR88 Sat, 01/27/2018 - 17:49 Permalink

The world's major central banks, for the first time in history, are all printing money and pulling in the same direction. This is absolutely unprecedented.

truthalwayswinsout Sat, 01/27/2018 - 19:13 Permalink

The serious cracks in the 30,000 BMB (Bernie Madoff Bombs) in China have started to show up. There are now 29,999 BMBs because one just went off last week for $11 billion US. All of a sudden the US is getting tough on trade and when you have a $700 billion dollar trade deficit you have nothing to lose by starting a trade war. This will set off most of the BMBs in China.

When they start to slide, they will go off so fast most will fall apart in 30-60 days.

What this means is unless you are short right now, you will never get a chance to sell anything for a good 10-15 trading days. The market will go from where it is now to 50% off in a few hours or days. Most alleged billionaires will lose 90% plus if not all of their assets and it will be exciting beyond belief if you did not fall for all the hype and bet on the downside.


canisdirus Sat, 01/27/2018 - 23:59 Permalink

Yesterday my all world markets index ETF gained 1.03%.

In one day.

One. F*cking. Day.

My investment gains thus far this year: 6.91% (annualized, that’ll be 97%, and it’s getting steeper)

This thing is shaping up to dwarf tulip mania...

idontcare Sun, 01/28/2018 - 00:56 Permalink

Hey, Lindsey Williams came out of hiding & was on C2C the other night claiming his 'elite friends' were stoking this market up much higher without any significant pullbacks through Trump's second term then they are pulling the plug.  He said 30K is assured this year & then bandied abt #s like 50k as not being too far off.  Now c'mon, that prediction alone has to signal something? :-O ;-)