Yesterday’s solid session saw investors shift back into growth, Consumer Staples (XLP), and Energy (XLE).

The correct names were in the green as the Mag-Seven resumed its weight station role.

Market Breadth

What stands out most with yesterday’s market breadth is that only four stocks touched new 52-week lows on the New York Stock Exchange (NYSE) and 62 on the NASDAQ Composite.

After a mind-boggling run, there was some profit-taking in mid and small-caps. And large-caps keep chugging along.

Never Fear Index

This contrarian indicator continues to dwell in areas that suggest too much confidence.

It's Getting Hot In Here…

Now, the market has entered the ‘extreme greed’ zone, which doesn’t mean instant reversals, but it will have lots of investors spying on the exits.

Moreover, Jay Powell has awakened zombie companies and the shortest ones.

Maybe the ride gets bumpy, but the strength of this move shouldn’t be seen as a negative. Great work from RenMac illustrates the deGraaf Thrust, which sees the market higher six months after 70% of the S&P 500 make 20-day highs. It worked every time (six) going back to 1957.

If the Street is modeling six rate cuts next year, the bias will remain to the upside.

Developments in and around the Red Sea are grabbing more attention from the Street.

The economic calendar picks up today with news from the housing market.

Today’s Session

Housing starts surged, but permits were lower. I think we embark on a period of wild swings on economic data. 

Meanwhile, the cash continues to cascade into the stock market coupled with serious short covering - it’s a party (for everyone but the shorts and smartest folks in the room that laughed at you all year long). But don’t lose your head.

Comments

Charles, you are a beacon of light and positivity in such a negative world. Some of your "expert guests" during the last year plus with all their data have been remarkably negative and wrong (I like to name them but won't)... but if I listened to them, I would have missed out on the really substantial gains I have enjoyed this year and particularly since the rally since November). More than made up for 2022 and then a whole lot more. God Bless you and your family and Merry Christmas. Sincerely Ken Wakeen ken wakeen on 12/19/2023 11:20:39 AM

Charles, love Fox Business, but really love your show because you actually talk about "making money" for the hour! Record it everyday to ensure I see it, if I miss it live. Jay Rosenbaum on 12/20/2023 7:59:20 PM

Thank you so much, Jay...I put so much work into the service and the show.  I laugh when people tell me they feel sorry for me working so much.  Beyond being my passion, it gets me an even more tremendous boost when someone tells me how much they love and appreciate the effort. CP Charles Payne on 12/20/2023 8:07:05 PM

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