Professor Elam

Monday July 27, 2015

We have noted that fewer and fewer stocks are still advancing, this is both a divergence and shrinking leadership, a classic sign of an ending bull market. Into day's WSJ Page C1 we learn that six firms account for over half the $664 billion  value added to the NASDAQ this year. 

Amazon, Google, Apple, Facebook, Netflix, and Gilead

On page C6 Heard on the Street notes that peak demand for gasoline is now. Refineries are churning out plenty of gasoline and distillates given the low energy prices.  This suggests the market may may well take out the previous $42 low. That would be a fifth wave to the $35 range last seen in Dec 2008. Just speculating…