After a very strong 4th quarter for stocks, it looks like 2023 is getting started right where they left off.
But this time, it’s the Nasdaq that’s leading the way.
So far this year, the Nasdaq100 is up every single week.
It’s largest components are driving the overall market higher.
Look at those returns so far in January.
Heck those would be amazing annual returns for a lot of these names.
This type of behavior early in the year is perfectly consistent with some of the best years on record for the stock market.
It’s called the January Barometer, “As January goes, so goes the rest of the year”.
You can see here how the first 2 legs of the Trifecta have done so far in 2023. They’re 2 for 2, with the final piece coming at the end of the month.
But those stats are more driven by the S&P500.
Here’s a recent look specifically at what happens when the Nasdaq is up each of the first 3 weeks of a new year:
It’s not a bad thing historically for stocks to come out hot right out of the gate.
That type of behavior is what you see at the beginning of great years.
But more importantly, it’s the sector rotation that really stands out to me.
Sector Rotation is the lifeblood of a bull market, is how I learned it.
Is it the leaders catching down to the laggards, which is how bear markets progress? Or are we seeing the laggards catching up to the leaders, like a textbook bull market?
You tell me.
We love to hear from you!
But we lay out exactly what we’re looking for in this market, and how we want to profit from it all in this week’s Live Mid-Month Conference Call.
This is obviously a can’t miss replay. You can download all the slides and watch the video here as many times as you’d like.
In fact, every live Conference Call since 2015 is archived here. Go back and check the tape.
The one thing you’ll find is consistency.
We have a process. We stick to our plan. We remain disciplined.
Most importantly we ignore the noise.
Just look around. You’ll find many investors focus so much of their attention on arbitrary things like the economy or corporate earnings, that they miss what the market is actually doing.
And since what the market is actually doing is the only thing that pays anyone, that is where our focus is.
You can have the earnings estimates. You can have the economic conditions. Go pick your favorite ‘flation.
I don’t care.
It’s only price that pays. So that’s our focus.
If you have any questions at all or cannot access this week’s Live Conference Call, just email us or give Mary a call: +1 (323) 421-7910
See you in there!