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Animal Spirits: The Most Confusing Rally of All Time

Business ProBy Business ProMay 1, 20255 Mins Read
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Animal Spirits: The Most Confusing Rally of All Time


Today’s Animal Spirits is brought to you by Innovator ETFs by CBOE:

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Get a random Animal Spirits chart here

On today’s show, we discuss:

Listen here

Recommendations:

Charts:

Tweets/Bluesky:

The rare Zweig Breadth Thrust (ZBT) triggered today.

Marty Zweig discovered this signal and it has a perfect track record (using NYSE data from NDR).

This signal has been 100% accurate since WWII, with the S&P 500 higher 6- and 12-months later every single time. 19 for 19. pic.twitter.com/ofBNHBJZiU

— Ryan Detrick, CMT (@RyanDetrick) April 25, 2025

To say this one more time, what we’ve seen the past two weeks isn’t what you see in bear market rallies.

More than 70% advancers on the NYSE six times over the past 10 days. Never lower 6- and 12-months later for the S&P 500. pic.twitter.com/l7xov3sPeP

— Ryan Detrick, CMT (@RyanDetrick) April 25, 2025

The S&P 500 is up at least 1.5% for three days in a row.

This isn’t stuff you see in bear market rallies or short covering rallies. You see this before times of strong performance.

Higher 10 out of 10 times a year later and up 21.6% on average. pic.twitter.com/kfvfNKq6IK

— Ryan Detrick, CMT (@RyanDetrick) April 25, 2025

NOTHING TO SEE HERE FOLKS

THIS IS COMPLETELY NORMAL AND HEALTHY

HAVE THEY CONSIDERED CUTTING AVOCADO TOAST OUT OF THEIR BUDGET pic.twitter.com/PYtLBGNprG

— Lance Lambert (@NewsLambert) April 23, 2025

In the past 15 trading days the S&P 500 has seen runs of:

-12.1% (in 4 days)

+9.5% (1 day)

-5.5% (7 days)

+6.3% (3 days)

Like 4 months in less than one

— Ben Carlson (@awealthofcs) April 25, 2025

Who else is excited to see how we fix these problems? The USA’s “broken” monetary system:

#1 in total wealth.
#1 in total GDP.
#1 in GDP growth in the G7.
#1 in global corporate profits.
#1 in GDP per capita in the G20.

— Cullen Roche (@cullenroche) April 22, 2025

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Nothing in this blog constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security.  Any opinions expressed herein do not constitute or imply endorsement, sponsorship, or recommendation by Ritholtz Wealth Management or its employees. 

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References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

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