We're back on The Morning Show today LIVE on Stock Market TV!

If you want to know what's moving markets this week, and how we're thinking about profiting from it, then the Morning Show is for you!

Today's guest is Jay Woods, New York Stock Exchange Floor Governor and Chief Global Strategist at Freedom Capital Markets. He messaged me that he disagrees with my take on the market so we're about to debate LIVE on the show. You're not going to want to miss this one!

Writing to let everyone know that the next ASC Premium Mid-Month Strategy Session will be next Monday January 20 at 8 pm ET. 

We're back on The Morning Show today LIVE on Stock Market TV!

If you want to know what's moving markets this week, and how we're thinking about profiting from it, then the Morning Show is for you!

Today's guest is fellow twin-boy dad Todd Gordon, Portfolio Manager at Inside Edge Capital. Todd is an old pal, veteran trader and world class skier. You're not going to want to miss this conversation!

The Mötley Crüe song title comes to mind: Same Ol' Situation. 

It's always the same questions. Every bull market.

How much higher can stocks possibly go? Was that last high the top? Why is the economy not as strong as the stock market? 

That's the thing. We want to pay attention to what's happening around us. Because we've seen it before and we'll see it again. It's just humans being humans. 

I like to turn to the data and weigh the evidence so we can try to make the most informed decisions possible.

The way I see it, this has been a bull market for quite some time, well into year 3 now. Whenever a lagging sector has been most vulnerable to break down from a major top, the opposite has happened.

We're in the 3rd year of a bull market and sector rotation continues to be a dominant theme that's driving stock prices higher, and probably more importantly, not allowing them to go lower.

Stocks making new lows is a big deal, and it's a prerequisite in order to have a bear market or a downtrend of any kind. As we discussed this week, the current market lacks this key characteristic - that is new lows. You can't have a market correction without them. It's just math.

Also during corrections, you regularly see rotation into the more defensive stocks, like Consumer Staples. You don't have that either. In fact, Consumer Staples just closed at new all-time lows relative to the S&P500.

Sector rotation continues to be a major driving factor in this market.

We talked about it earlier this week in our LIVE Strategy Session. 

While some sectors and industry groups have been taking a breather, after these historic runs, other stocks have been catching a bid - things like Medical Equipment, Airlines and now Energy stocks.

The one constant, however, is the rotation OUT of Consumer Staples.

This defensive sector consistently outperforms when stocks are under pressure, and when it's a less than ideal environment to be putting risk on in equities.

This is the opposite of that.

Look at the new all-time lows for Consumer Staples relative to the S&P500:

Just a quick programming note. The US Markets are closed today for a national day of mourning, after the passing former US President Jimmy Carter.

We'll be back to our regularly scheduled program tomorrow and every weekday after that. Make sure to save this link as a favorite to join us 8:30-10AM ET daily on The Best Morning Show in Finance.

First 5 Days Indicator

The S&P500 is less than 3% away from making new all-time highs, but investors are losing their minds. 

You notice how everyone is now a "breadth expert"? One by one, they're all out there mansplaining breadth deterioration to anyone who will listen.

We're back today on The Morning Show only on Stock Market TV. We're live every weekday from 8:30AM - 10AM ET.

Do you want to be prepared for the day ahead? Do you want to know what's driving these market moves? Come hang out with us today as we sit down with special Guest Ryan Detrick, Chief Market Strategist at Carson Group.

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:

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. 

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?

It's a new year and the market is looking forward. 

It doesn't matter what happened last year, as far as our decisions are concerned. But let's not forget that humans are irrational, and they will certainly let the past year or two impact their decision making.

They can't help themselves. So it's up to us as traders and investors to extract those dollars for our own selfish reasons. 

We're here to make money. Period. Taking advantage of human flaws is a great way to do that, as I've been showing you here every day for over a decade. 

Yesterday we discussed the irrational behavior we're seeing from investors in the middle of a bull market. They're running scared, just as market breadth is improving to the upside, across multiple timeframes.