New high club

More and more stocks are joining the 52-week high club. While a breakout in breakouts has been a good sign, we've reached a point where it may be too much of a good thing, at least in the shorter-term. On Thursday, more than 600 securities on the Nasdaq exchange hit a 52-week high, versus only a handful of them falling to 52-week lows. The net number (highs minus lows) accounted for more than 15% of all issues on the Nasdaq, ranking as the 16th-best day since our data begins in May 1984. Below, we can see the Nasdaq Composite's returns after all days when more than a net 15% of issues hit a 52-week high. Mostly poor returns over the medium-term, especially prior to the last decade, but consistent long-term strength.