When does a market reach its top? The question is easy, the answer is much harder. Because practice teaches us that most investors have a tough time knowing when a market is topping out. Wall Street remains on a roll in the meantime.
The US economy is still doing best globally by far and the figures will not tell you otherwise. We saw it again this week in the strong US ISM index, while a few other comparable PMI indexes in both Germany and China disappointed.
Inexplicable Drop In apple
What is remarkable, however, is the fact that Apple had to take a significant step back earlier without any clear reason. It is not abnormal for the biggest and best blue chip stocks, like Apple, see a bit of profit taking left and right. But we'll have to keep an eye out.
Oil managed to recover a bit after the hit of the OPEC meeting, but it was not very inspiring. We assume that it will take a while before the calm returns on the oil market. A strong climb is not really in the cards right now, in our opinion.
It is clear that keeping a close eye on the development is going to be important. It is indeed the case that a few blue chips are showing signs of fatigue; they are not riding the full extent of this bull market, like Apple, without any visible explanation.
