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The major averages around the globe have been amazingly resilient. Even as bank stocks slump and oil prices slide, indices weighted to other market sectors are climbing to new highs.
I describe the investment strategy in the U.S. as a barbell, where investors buy tech stocks at the risky end of the spectrum, combined with the safety of utility stocks for the dividends at the other end. The Dow Utility Average is at an all-time intraday high on Friday morning.
The technicals for the five major U.S. equity averages remain mixed. June began with new all-time intraday highs for the S&P 500 and Nasdaq Composite (NDAQ) . Overseas, the Nifty 50 and the German set new all-time intraday highs on Friday. New highs were set again at Friday’s open.
If the Dow Jones Industrial Average (INDU) maintains pre-market strength on Friday, it too should trade higher than its March 1 all-time intraday high of 21,169.11. Dow Transports and Russell 2000 lag their all-time intraday highs of 9,639,33, set on March 1 and 1,425.70 on April 26, respectively. The Dow 30 set an all-time intraday high this morning.
The Nasdaq Composite set its all-time intraday high of 6,247.07 on Thursday approaching my annual and semiannual risky levels of 6,253 and 6,387, respectively. Today’s new high is within my risky area, so its time to reduce holdings.
Overseas, the Nikkei 225 set its 2017 high of 20,239.81 on June 2, while the nifty 50 and German DAX set all-time intraday highs of 9,673.50 and 12,878.59, respectively. The Shanghai Composite remains the laggard with the Chinese benchmark still under a negative weekly chart and 40% below its June 12, 2015 bubble peak of 5,178.19.