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Investing Update: Record Highs Here To Stay?
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Investing Update: Record Highs Here To Stay?

What I'm buying, selling & watching

Eric Soda
Jan 25, 2025
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Investing Update: Record Highs Here To Stay?
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After a rocky late December and early part of January, the stock market roared back to new all-time highs this week.

After 57 all-time highs in 2024, this is the first record high of 2025.

Source: Charlie Bilello

After only a few weeks into the year, the S&P 500 is up 3.7%, the Nasdaq is up 3.3% and the Dow leads all the major indices so far as it’s up 4.4%.


Market Recap


Weekly Heat Map Of Stocks


A new all-time high isn’t something that you see in downtrends. There is a clear uptrend in this bull market. For the first time since December 16th there are more stocks in an uptrend.

Source: Grant Hawkridge

Remember a bull market doesn’t end without stocks making new lows. In fact, the net new highs have started to expand again.

Source: Bespoke

ETF inflows show that U.S. large caps were bought and bought very aggressively.

Source: Liz Ann Sonders

It sure looks like the recent pullback was another one to have bought in this bull market. Does this mean that more record highs are now on the horizon?


Investor Sentiment Flips

I said the following in that last week’s update. Investing Update: Has Sentiment Shifted?

These are the dips to be bought as we’re still in a strong bull market. We can’t forget that. Expect the year to be bumpy but this overreaction in bearish sentiment has set up a multi-week rally in my view.

It turns out that it was an overreaction and the market did in fact rally. It rallied to new all-time highs. The bulls are back!

Source: Mike Zaccardi

Look at that jump out of bearish territory.

Source: Liz Ann Sonders

Remember when sentiment gets so far in one direction, it’s due to swing back the other way. It never fails. In the moment it’s hard to remember that. When everyone gets to one side of the boat, it’s time to move to the other side.


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