[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] We got strong rallies in the S&P 500 and NASDAQ today; a little less power on the Dow and Russell 2000, but they came along for the ride. Seeing as this is the last trading day of the Biden administration, I’m seeing some talking heads out there calling this the “Trump Rally 2.0.” Thing is… that’s not the right call. I love a rally as much as the next guy – stocks went ballistic during Trump’s first term… but this is not “it.” That’s not just a hunch. The charts from the bond market and the dollar do not confirm the rally. I’ll show you what I mean in a second. Of course I’ll also show you where the real action is…

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Some weeks, you see it all… and this is one of those weeks. What had been a tape on life support roared back – violently – the second traders perceived inflation was cooling off. (Whether that perception is accurate… well, that’s a different story.) Bonds have staged a recovery, as well, which means savvy folks should be thinking of fixed income – or fixed income proxies like utilities. We’ll talk more about that in a second when I run down the top utilities to own right now. I’ve got bullish targets, dividend yields, and a lot more to show you for each ticker, so let’s get started…

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] We got a rally today. Not the rally, but a rally. The S&P was up nearly 2% when I recorded this, and the NASDAQ was rockin’ more than 2.5% to the upside. We can chalk this up to CPI this morning; traders read the tea leaves and decided inflation had cooled off and it was safe to come out. Stocks are on fire. Enjoy it, but don’t get too comfortable. Rip-your-face-off rallies like this are a sign that the market is still really volatile. What we’re seeing right now is a violent, reflexive bounce. Like I told everyone this weekend, the expected move was +/- 117 – that’s a big number. I’ll show you in my charts, though, that this has actually taken us… exactly where we’re supposed to be in terms of the expected move. I’ll draw you some

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] The markets’ mood has soured – that much is obvious. There are worries about inflation – also obvious if you look at the bond market. That makes tomorrow morning’s CPI data release critical. It could make or break the action in the bond market but in stocks as well. Crude oil is at a critical level but I’m encouraged by what I see in crypto right now. See, if the mood had gone completely risk-off, Bitcoin would be plunging, but that’s not what’s happening. More than that, earnings season (and Don’s earnings flip trade!) is right around the corner – this could be a massive profit catalyst. So tonight, let’s run through what I’m seeing out there, where the opportunities are, and what’s ahead for the markets…

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player]   Our hearts go out to the people impacted by the wildfires in Los Angeles. The human cost has already been staggering, with at least 24 dead and as many as 100,000 forced to flee their homes. We don’t yet know the final financial toll, but as traders, we can already see signs in the market. The potential clean-up and rebuild will cost, and the tape reflects this inflationary reality. Today, for instance, was marked by rising energy prices and strength in materials and construction equipment. At first look, oil prices have been setting up for a breakout for a while, but something seems to have changed. We’ve already seen bullish conditions for energy, but beyond that, stocks like Caterpillar (CAT) and John Deere (DE) are breaking out today. We’re seeing relative strength increase in steel companies like Cleveland-Cliffs (CLF),

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] All of the big indexes got rocked to the downside today. On the surface, the market had a “good news is bad news” freakout about strong December jobs gains. We’ve seen this behavior before. Last week, in fact, I invited traders to “enjoy the bounceback… and get ready for another smack.” And that’s what we’re getting right now – what we’ve been getting for most of the week. The thing way down in the belly of the beast that is smacking this market… is bonds. Now, I know plenty of people don’t trade bonds. I do, but a lot of people don’t. But regardless of whether you’re trading them, they’re what’s killing stocks. “You might be done with bonds, but bonds aren’t done with you” is how I’d put it. They’re stuck in a wild feedback loop – and I’m

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Growth: Every country wants it, and governments and their planners will crawl over broken glass to get it. Here in the United States, growth has been so-so, well below 3% in 2024, though it’s strong compared to many other big economies. As we’ve been talking about recently, we can look at the behavior of assets to get a good read on the prospects for growth – or lack thereof. If you joined my session this morning, you’ll remember we looked at gold and copper – two essential metals. Gold is an ancient hedge against inflation, while copper is an indicator of demand. When they move in opposite directions, we know there’s economic trouble brewing. When they move up together, we can safely assume that the economy is healthier and primed to grow. Let me show you what I’m seeing in

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Stocks gave back all of Monday’s gains and then some today. Monday’s panic buyers were mercilessly punished for going nuts during the spree. Frankly, I’m not surprised by today’s plunge – I actually find it encouraging. That’s because a period of sideways price action will provide fuel for an even more powerful rally down the line. Bonds are putting pressure on stocks right now, and the energy sector is going to have to roll over to bring some relief to interest rate fears. Even crypto, which treated us very well in the back half of 2024, is under momentary pressure. But here we have too many traders chasing a move. This brings me to the correct move in these situations. In a two-sided market, traders who chase every rally or short every pullback are the reason patient traders like us

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] If, like me, you’d watched the market edge higher this morning, what would you have guessed was leading the way? None other than the Magnificent Seven, of course. In this day and age, it’s generally a good bet that that particular “basket” of stocks will lead markets higher. In fact, in 2024, Apple (AAPL), Amazon (AMZN), Google (GOOG), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) accounted for a staggering 60% of the S&P 500’s 24.2% bullish run. What’s more, if you peek into hedge fund portfolios, you’ll find some combination of these stocks among their holdings. What does this mean for regular folks like us? Well, it means that if you’re generally bullish on the market, it’s a good idea to hold a number of these stocks. Days like this put the proof in the pudding. But there’s

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Markets were up strongly today, bouncing back from this week’s beatdown. But here’s the thing. Correlation is high and still increasing. I’ve talked a lot about this recently. Correlation is tricky stuff. When you see stocks moving with no headline or hard, identifiable event driving that move – that’s correlation. And what it takes up, it can take down. Sure, that’s not the most cheerful New Year message, but I’m here to help you make money. Traders like us are going to have to shift gears and contend with increasing volatility. That’s not a bad thing at all. Here’s what I see…