A funny thing happened last summer.

Financials as a sector successfully retested the highs in price from just before the start of the Great Financial Crisis.

Look at the 2007 peak in Financials. After testing that level and failing in 2018 and 2020, prices ultimately broke out.

Last summer was the retest.

Former Resistance turned into Support:

From the Desk of Kimmy Sokoloff

It was very whippy price action today in individual names.

We saw a lot of stop outs in the morning, then some recovery later on.

From the Desk of Kimmy Sokoloff

As of this morning we filled a gap on $SPY at 390.65.

If we continue to stay below 390, there's potential to see 386. 

Today’s Hot List is a short one, as insider activity has cooled with the broader equity market this week.

The only insider transaction was a Form 4 filing by EcoR1 Capital LLC.

The underperformance out of U.S. Large-cap Growth indexes continues.

It's not the stock market's fault that the S&P500 has way too much exposure to large-cap growth.

And when we talk about "the stock market", there are countries outside of the United States that continue to shine.

Today's Chart of the Day shows the S&P500 hitting new 52-week lows relative to Developed Countries outside of North America:

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!

One way we're doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega-cap status (over $200B).

Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.

But the scan doesn't just end there.

We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.

From the Desk of Kimmy Sokoloff

The market took a breather today. $SPY hit 400 and backed off again.

We broke below the 200-day moving average and the eight-day moving average at 393.10. 

This is the video recording of our January 18, 2023, Inside Scoop Weekly Strategy Session.

This is a question I've been getting a lot.

"JC, how could you say we're already in the 8th Month of a new bull market???"

The things people call me over email or on twitter are not something I would repeat in front of my mother, or daughter, and certainly not in front of any of you guys.

But I'm a big boy. I spent a lot of time on trading floors, dugouts and locker rooms. I've heard way worse.

It is interesting, however, to observe the feedback I get from just some basic arithmetic.

This isn't like some random opinion I have about the economy, or Fed policy or earnings. This is just 3rd grade math.

Are more stocks going up? Are more stocks making new highs? Or are more stocks going down and making new lows?

Since June, the answer has been up and certainly not down.

Notice how the new lows list peaked in Q2. Even though some of the large-cap growth-heavy indexes made new lows later in the year, even for just a hot second, by that point there were almost no stocks left that were going down.

From the Desk of Kimmy Sokoloff

We're hovering around the $SPX 4,000 level, and we consolidated nicely yesterday.

Time will tell if this market needs a rest or we continue higher sooner versus later.

Alabama Sen. Tommy Tuberville filed his first Periodic Transaction Report of the year.

Sen. Tuberville disclosed the purchase of Barrick Gold Corporation $GOLD for an amount between $15,000 and $50,000.

This is the video recording of the January 2023 Mid-month Conference Call.