Astute Strategist Blog

Market Context
A new all-time high in indexes along with stocks and it appears this everlasting bull run is here to stay, at least for now. The Dow, S&P 500 and Nasdaq all made their way higher this week and given that the S&P 500 was just why of 3100 it would seem as though that would likely be the next test, whether we close above it and or surpass it is another story. Personally, I believe going through 3100 in the SPX is just a matter of time, however, in the short term, it is probable we pullback as investors and traders take profits before the next run up.

Now that we have expressed our opinion on the market, here is something interesting to note. Recall on June 23rd, 2019, we wrote “Time will tell if we are ready to breakout further to newer and higher highs or if we are still in a consolidation pattern. Either way, as mentioned we are bullish over the longer term time frame and a company such as Apple Inc (AAPL) is a prime example of where we would look at buying on dips and putting monies to work. If the market is set to make newer and higher highs and a stock like AAPL is in bull markets outperforming the market, where would you want to put your hard earned money to work?”. On the 23rd of June, the S&P 500 was at 2950 and AAPL at 198, as of Friday, November 8th, 2019 the S&P 500 closed at 3093 and AAPL at 260. This equates to a gain of +4.8% in the S&P 500 while Apple (AAPL) posted an impressive +31.3% gain, more than outperforming the market and in our opinion goes to show where the smart money is being put to work. All things considered, this bull market is not showing signs of weakness (yet) and while we could easily see some short term volatility, our opinion over the very long term remains intact and so the dips and pullbacks are simply buying opportunities.

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