The number of stocks making new lows remains negligible. Last week, the number of stocks making new 52-week highs on the NYSE + NASDAQ surpassed a number of prior peaks (Dec 2021, Apr 2022, Nov 2022). It’s now at its highest level since November 2021.

More Context: Everyone has their own definition of a bull market. For me, it’s when more stocks are making new highs than new lows. Bear markets tend to end when new lows drop below new highs. Bull markets are sustained when new high lists expand. We are seeing that now among individual stocks and we are seeing that at the industry group level (especially outside of large-caps). In moving from 2022 to 2023 we have transitioned from broad weakness to broad strength. Big day-to-day price swings haven’t gone away, but after volatile years (like we experienced last year) that can be slow to ebb. Most of the strength that looks sustainable is happening beneath the surface of the popular benchmarks or beyond the borders of our country. It’s a new year with new...

We're already long some domestic semiconductor stocks via options (the trend is working). However, perhaps we've set our sights too close to home.

International stocks have been on a tear recently, showing even greater strength than the U.S. So maybe we should be looking for the strongest stocks, in the strongest sectors, in the strongest countries?

With this in mind, today's trade takes us to Switzerland.

From the Desk of Ian Culley @IanCulley

The dollar is back and on the move.

After falling for four straight months, the US dollar index $DXY is up three days in a row. Whether the near-term dollar strength turns into a more sustained trend is anyone’s guess.

Regardless, risk assets feel the pressure as many areas begin to correct, including precious metals. 

Despite this recent selling pressure, we have clear levels to trade against when it comes to Silver and mining stocks.

Before we dive into those critical levels of interest, a friendly reminder…

An overwhelming amount of supply still exists for Gold futures in the 1,924-1,965 zone:

It’s not surprising to witness gold correct below this level, especially since it gained more than 20% off its Nov. low.

In fact, I would be more surprised if gold didn’t pause at this level. I’m not concerned with the selling pressure in Gold.

On the other hand, the next two charts highlight key levels precious metal bulls need to defend.

First up, Silver futures:

I noted a couple weeks ago the bull flag in Silver looked a bit long in the tooth. Fast...

Over the last week, we've seen some mild profit-taking, with Bitcoin and Ethereum chopping around following retests of critical resistance levels.

Our thesis remains that a structural shift has occurred, with the short- and intermediate-term trends now higher.

We've adjusted a position in the Paid-to-Play portfolio today:

Both Icahn School of Medicine at Mount Sinai and CMLS Holdings LLC filed Form 4s for a combined amount of $40 million in GeneDx Holdings Corp $WGS.

Activist investor and retail industry entrepreneur Ryan Cohen took a stake in Nordstrom $JWN, sending the stock higher by more than 20% Friday.

From the Desk of Kimmy Sokoloff

I mentioned in Friday's Morning Briefing that if $SPY really breaks below 412.88, we can see 408.

SPY traded in that range this morning. Currently, 408 is support.

If we bounce, we can head back up to 411. If not, we can see 405.13.

Stock market bulls have been rewarded over the past 3 months.

And remember, historically these are the best 3 months of the year - November through January.

And then comes the hangover.

Think about those last three months.

Did you see people having a good time?

Were some having a little too much fun?

Would you agree there was some disorderly conduct?

Were participants behaving as if they were under the influence?

You bet.

And this sort of behavior is normal for this time of the year, and the entire 4-year cycle for that matter.

But then comes February - one of the worst months of the year.

"I only trade U.S. Stocks, JC"

"If you can't find a stock in America to buy you're not looking hard enough, JC"

"I live in America, JC"

"I don't know anything about those stocks in other countries, JC"

Trust me, I hear all these things.

Not so much from you guys, as it is my friends and colleagues in the business.

I feel like readers of Allstarcharts know better, and also we have a very global audience.

So the recency bias that oozes out of most American investors, who have gotten accustomed to the U.S. being the best place to be, forgot what it's like when that's not the case.

You're talking...

The Value Line Geometric is one of the more underappreciated indexes that we have at our disposal.

The Dow is the OG, the S&P500 is the benchmark and the Nasdaq gets all the girls.

But you know, it's the Value Line Geometric Index that might actually give us the best information.

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

I remember last year getting yelled at and trolled online because I was talking about breadth improvement.

Just because their stupid computers weren't telling them that it was time to buy didn't stop me and my team from simply counting how many stocks were going up vs how many were going down.

Boy did that serve us well as stocks have absolutely ripped higher over the past couple quarters.

We've been in a raging bull market while most investors keep asking me when stocks are going to bottom.

That's how far removed most people are from reality.

In fact, market breadth has improved so much that we're now seeing more stocks making new 52-week highs than we saw at the peak in the S&P500, Dow Jones Industrial Average and Nasdaq back in late 2021.

Yes, more stocks are making new highs today than there were at the "market's highs":