"Only Tech Driving This Market"

JC Parets
January 30, 2024

I understand that some people are lazy and don't like to count.

I get that.

Also, journalists are NOT in the business of telling you the truth. The truth is just a commodity at this point, and that's no longer a secret. Word's gotten out. So it's either gross sensationalism or false information to get you to consume their content.

And then, of course, you have your standard charlatans who need to cherry pick data and manipulate anchor points so that they don't look as foolish for missing this entire bull market.

So what ends up happening is that if you're told something enough times, and you haven't actually done the work, you start to believe it.

"It's only Tech stocks that are driving this market"

Sound familiar?

But for those of you who actually take the time to look, you know it obviously isn't true.

Here's Europe, for example breaking out to new multi-year highs. Is that because of Tech? Or is it because these European Indexes are loaded up with Industrials?

U.S. Large-cap Industrials are making new all-time highs, helping to drive U.S. Indexes higher.

We're seeing the exact same in Europe.

But it's not just U.S. Large-caps doing the heavy lifting. Small-cap Industrials are also making new all-time highs.

I think about it like this.

Maybe your small-caps aren't working. But small-caps are definitely working.

In fact, the most important small-cap sectors are all outperforming the S&P500 this bull market.

Go look for yourself.

Also, if it was just Tech that is driving this market, then how come the biggest bellwethers in both Financials and Industrials are making new all-time highs?

Look at all the major indexes across different timeframes.

Regardless of whether you're looking for short-term trends, intermediate-term trends, or long-term trends, the trends are up. Not down.

This list below includes several indexes on the y-axis, including the Small-cap Russell2000 and the Value Line Index (representing the median stock). On the x-axis you have a series of moving averages and where each index sits relative to it (Smoothing it further out as you move to the right).

The trend for most stocks is up.

In bull markets, you'll see that a lot. Go back and study all the bull markets in history. What you'll find is a lot of green in the table above comparing the major indexes and their respective moving averages.

In bear markets, you'll see the opposite. You'll see a lot of red in this table. That's because in bear markets, stocks go down in price and trend lower over time.

Trends can change, of course. Corrections certainly happen.

And while we're well aware of the divergences happening underneath the surface, so far this correction in stocks over the past 6+ weeks has been a stealth one for sure.

I'm actually impressed with how well breadth has held up during this period.

But these key factors that would suggest a deeper correction is necessary, are still front and center.

We've made some small-adjustments to how we approach the market this month, but only slightly.

We've still been buying stocks and we have not changed that strategy at all.

January is almost over so that means one thing: NEW MONTHLY CANDLESTICKS!!!!

We get a ton of value from this gift of the market gods.

And I'll be sharing all of it with you this Monday February 5th during our LIVE Conference Call.

Premium Members make sure to Register Here, if you haven't already.

And if you have any questions on accessing this LIVE Strategy Session, please email Mary or call her directly: +1 (323) 421-7910

We get going LIVE on Monday Feb 5th @ 6PM ET.

See you there!

JC

 

 

Filed Under: