When the market bottomed in mid-2022 and the rally that followed, the market mostly was above the 200-day moving average, despite a few corrections. When a market gets cheap, about 10-30% of stocks trade are above the 200-day. Presently, 59% of stocks are. During peaks in 2023, over 70% were. Peaks in 2024: 80s or 90s in terms of percentage. But during the 2025 peak: 70% only, just like now. So with each new record high, fewer and fewer stocks are participating. Market tops are impossible to call, but market bottoms are easier because of the panic and fear. Euphoria dies off slowly.
Two key components. One is valuation, and one is sentiment. Sentiment just doesn't want to give up. Part of the reason shows up when you look at the bond market -- it hasn't been a great place to be over the last 2-4 years, but the stock market has.
Some may be saying that if inflation keeps rearing its ugly head, and central bankers actually increase rates, that's going to hit my bond portfolio. I'm already only making a 3-4% yield, and now may be taking a capital hit. I might as well go into growth assets -- earnings and operating margins keep going up, unemployment rate is low, governments keep spending. (He hates to say this, but the war is actually good for the economy.)
People are saying this has been the best game in town, so why stop? Especially when they don't see any clouds forming.

Here are the Canadian companies listed on Stockchase who are reporting earnings this week: 🛍 Consumer 💻 Technology 🚚 Industrials Use this list wisely to identify buying opportunities.Happy trading !!! read more
He should have sold more shares as it rallied before today's 12.84% slide.
Stronger than expected employment numbers in both the U.S. and Canada triggered a strong sell-off in AI tech stocks Friday. Investors forecast at least one interest rate hike by the U.S. Fed this year, despite Trump replacing the Fed chair specifically to cut rates. The most influential names on Wall street were hammered: Nvidia -6.2%, Intel -11.28%, Micron -13.25%, Amazon -3.06% and Tesla -6.56%. The S&P closed the session -2.65% which erased its gains for the week; the Nasdaq shed over 4% on Friday and more than 4.5% for the week; and the Dow sank 1.35% though nearly broke even over the week. Meanwhile, the U.S 10-year yield climbed past 4.54%. Bitcoin extended its slump by 4.1% to US$60,970.
The TSX slid 2.2% or nearly 800 points, even though sectors were fairly mixed. There were outsized gains in healthcare but huge losses in materials, tech and energy. Major movers on Bay Street included Transcontinental 7.43%, CNQ -3.7%, BlackBerry -9.17%, Suncor -4.57% and Curaleaf 6.57%. Silver slid 8.4% to US$67.55 and gold tumbled 3.6% to US$4,315.
💾 NVIDIA Corporation (NVDA) -6.2%
💾 Intel (INTC) -11.28%
💾 Micron Technology (MU) -13.25%
📦 Amazon.com, Inc. (AMZN) -3.06%
🚗 Tesla Inc (TSLA) -6.56%
🅱 Bitcoin (BTCUSD) (BTC-USD) -4.1%
🖨 Transcontinental Inc. (A) (TCL.A.TO) +7.43%
🛢 Canadian Natural Rsrcs (CNQ.TO) -3.7%
📱 BlackBerry (BB.TO) -9.17%
🛢 Suncor Energy Inc (SU.TO) -4.57%
🌿 Curaleaf Holdings Inc (CURA.TO) +6.57%
Run up, so take some profits. You don't want to sell them, though. Good line of sight to double-digit total return over a cycle. Yes, we're in a "technical recession", but it's narrow and concentrated in certain parts of the economy. As well, the banks own global and US assets, and the US is not in a recession.

This week were 20 Stock and 3 ETF Top Picks in a wide range of industries: Technology, Consumer, Financials, ETF, Industrials, Basic Materials, Energy and Healthcare. Here are this week´s Top Picks as selected by: Michael O’Reilly, Billy Kawasaki, Brianne… read more
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