No. of Recommendations: 3
The NYSE exchange finished with more than 400 new 52-week highs yesterday which, for a day, is pretty good as we haven't seen such a day since 7 October 1997 when there were 479 new 52-week highs (and 631 on 3 October 1997). But 1997 is pretty hard to beat as for the week ending July 11 there were 1010 new 52-week highs. So the 661 we had last week, while pretty good (17.8% of the issues traded), doesn't come close to the record. And there were only 26 new 52-week lows which is well below the magic number of 40 though we saw lower the previous two weeks (18 and 17). Utilities and REITs continued to press onward in the exhuberance for yield, even if REITs do not qualify for the 15% tax on dividends (of stocks we own, Southern Company, SO; Washington Gas Light, WGL; and Kimco Realty, KIM) hit new 52-week highs and probably all-time highs on Tuesday, 27 May, but there were plenty more. The cumulative daily breadth finsihed at 49,000 which is getting close to what my memory thinks is the all-time high of 55,000. The dollar continued its decline and ended at 92.5. So this is some rally although the DJIA is still not above its January high.

Although the NASDAQ doesn't look nearly as good as the NYSE, there were still 354 new 52-week highs (about 9% of the stocks traded (3640) with only 45 new 52-week lows. Incidentally, the number of stocks in the NASDAQ composite continues to decline and ended at 3640 last week. The number of stocks on the NASDAQ will probably drop below the number on the NYSE (about 3538 last week) sometime this year. For the first time in 6 weeks, the NASDAQ weekly cumulative breadth was negative and now stands at -93,681, but still well above the beginning of the year.

How long can this go on?
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