Tuesday, 5 April 2016

Stocks mixed, red flag amid all-time highs

Markets were mixed on Monday.

The S&P 500 and the Nikkei 225 fell 0.3 percent but the STOXX Europe 600 rose 0.4 percent.

US crude oil fell 3 percent.

Although the S&P 500 as a whole fell on Monday, MarketWatch noted that 42 of the index's stocks hit all-time highs, mostly in consumer staples, consumer discretionary stocks and utilities. No stocks in the energy or telecom sectors recorded all-time highs on Monday.

In an earlier article, Michael Sincere wrote that the recent price pattern is one of the danger signs for stocks.

"Historically low P/E multiple stocks such as Campbell Soup and Paychex are acting like tech stocks, with three-month stock-price charts resembling hockey sticks, and floating sky-high P/E levels," he wrote. "It’s a red flag when stocks like this go parabolic."

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