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As Goes January...
One of the greatest market indicators of all-time is the January Barometer.
Brought to us by the good folks at the Stock Trader's Almanac, this indicator has one of the greatest track records of anything you'll find in the market.
As goes January, so goes the rest of the year.
In other words, if stocks rally throughout the month of January, the hit rate is off the charts for the rest of the year. Stocks tend to continue their strength for the next 11 months, almost every single time.
Yesterday we saw the first new all-time high for the S&P500 this year.
And stocks in general have been going up in 2025:
Notice how everything is up except for Consumer Staples.
Historically, during healthy market environments, the defensive Consumer Staples tend to underperform.
This time is clearly no different.
Also, I'm not just cherry picking Year-to-date returns. The January Barometer specially looks at returns for the beginning of the year. So December's performance is not relevant for this discussion.
"As goes January, so goes the rest of the year".
It's the sector rotation that continues to drive things.
I got people telling me that market breadth is weak. But how can market breadth possibly be weak if there aren't even any stocks going down in price? lol
You literally need stock prices to fall to have a bear market or a correction of any kind.
By definition, a lack of stocks falling in price, IS HEALTHY MARKET BREADTH.
Go and count for yourself. You'll see...
I cheated and actually took the time to count. So when it comes to market breadth, I know the answer, because I looked for myself.
Counting is underrated. I can tell you this for a fact.
So the question now is, what do we do about all this positive breadth?
Which sectors should we focus on? Which stocks are we buying?
That's what our Premium Conference Calls are for. This week was our LIVE Mid-month Video Conference Call exclusively for Premium Members of ASC Research.
In this call, we discussed my favorite long ideas from stocks with very high short interest. We also walked through some of my favorite biotech trades that can really soar this year.
And from a top/down perspective, we went through each of the most important intermarket relationships so we can nail down our asset allocation for the first half of this year.
Should we have more Bonds in our portfolio this year, as rates come down? Where do Gold and Silver fit into this profile?
What's going to be the catalyst to send the S&P500 up another 20% this year?
And what would have to happen in the market to get us more defensive?
It's a bull market, and we're acting accordingly.
Click here to sign up and give this week's LIVE call a watch, download all the charts and review the details for each of the new trade ideas.
We want to identify the ideal entry for each trade, where we want to put our stops and what the target is if/when we're right.
If you're looking for idea flow as well as a consistent top/down look at markets, you can join ASC Research here RISK FREE.
