Here's one thing we know for a fact about the market:

In order to have a bear market, or a correction of any kind, you need the prices of stocks to be falling.

Fact. 

Without the prices of stocks falling, you cannot possibly have a bear market, or any kind of correction at all.

That's just how math works. 

So if one would take the time to count how many stocks are actually going down in price, one would have a better understanding as to whether or not stocks are correcting.

See how that works?

And while the list of new 52-week lows is still nonexistent, that doesn't mean stock prices aren't falling. So we want to look at shorter-term time horizons to see if we're seeing an increase in the number of stocks falling in price.

Currently, we are not seeing any expansion at all in the number of stocks whose prices are falling. Here are Large-caps, Mid-caps and Small-caps all within the same range of new lows that they've been in throughout this bull market:

We'll know if we're in a correction. You'll be able to just count and see for yourself.

And you'll see the list of new 1-month lows expanding, new 3-month...

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

...

In today’s Daily Digest, we’ll review the following:

1. New position in XLC.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

If Semiconductors actually completed this massive top relative to the S&P500 then bull market cancelled.

Period.

For me, it was that simple. This is one of the largest and most important industry groups in America, and the rest of the world for that matter.

Losing Semi's would be like losing one of your legs. You wouldn't be able to walk anymore. 

This was a major topic of conversation last night during our first LIVE Conference Call of the year. You cannot miss this one. Click Here to access the replay,...

People keep telling us, "2024 was the year of artificial intelligence." 

That's bull shit, and we have the data to prove it. Last year was a year for the gold bugs. 🥳

Here's an overview of how each asset class performed in 2024:

Today's trade is in a $1B company that provides automatic identification solutions to commercial and government customers. Being that this company participates in the Software & IT sector, I expect it to perform well in a market environment where semiconductors are leading the way.

In today’s Daily Digest, we’ll review the following:

1. New position in GLD.
2. No adjustments are needed today.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended January 3, 2025. This report is published bi-weekly, in rotation with The Minor Leaguers.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names.

There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.

Click here for a behind-the-scenes look at our process.

Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers, there’s...

There's no way the S&P500 can rally again this year, right?

We just had 2 consecutive years of historic returns. The Nasdaq literally doubled since the end of 2022. 

Total Crypto Market-cap is now at $3.4 Trillion. It was only $750 Billion 2 years ago. You do the math!

The S&P500 was up 24% in 2023 and then up another 23% in 2024. 

How could things possibly get any better than this? I mean with the Fed, and the Inflation, and the Trump, and the Recession and the imminent crisis they all keep telling us about.

How could stocks possibly go up again in 2025? After the historic returns we just saw in back-to-back years?

Well, my friend...