SMO Exclusive: U.S. Stock Market Strength Report 2024-01-26 (+31%, Zone 1)

Brian Degracia

28 Jan 2024 • 5 min read

Do you know where there is current U.S. market strengthening and weakening? By my count, 1/26/24 🔹 Banking = Strongest industry, 🔹 Utilities = Weakest. Attached: an objective answer to “How is the overall market doing right now?”

Other interesting questions answered:
🔹 Are current market strengthening/weakening conditions more conducive to new longs or to new shorts?
🔹 Is market strengthening or weakening early or late in a meaningful cycle?
🔹 What are the strongest-rated stocks in strengthening sub-industries and industries?
🔹 What are the weakest-rated stocks in weakening sub-industries and industries?

(Congratulations SMCI holders on the blast-off through $350/share and 59% gain from 1/18/24 through 1/26/24. Is there really any controversy about strength begetting strength?)

DID YOU KNOW?

What IS:
The overall market is strengthening week of/ending 1/26/24.
🔹 The +31% market strength score = it is in early “no new shorts” territory
🔹 8 of 29 industries strengthened and 0 weakened last week
🔹 56% vs. 13% sub-industries Strengthening vs. Weakening (199 total Sub-industries)
🔹 Banking = strongest industry at Very Strong (2nd strongest of 9 levels), Midwest and Southwest Banks = strongest of its sub-industries at Strongest (highest strength level)
🔹 Utilities = sole industry < Average strength, at Weaker (7th strongest), with Electric and Water utilities the weakest of its sub-industries

What WILL BE:
I have no idea. Neither does anyone else. Execute your plan and follow your rules based on what IS.

WHAT’S INSIDE?
Few stocks buck the market trend.

At the same time, the market can only do what its underlying stocks do.

“What’s inside” is a detailed look at what you can find out about the market, sectors, industries, sub-industries, and individual stocks when you analyze a factor common to all of these: their strengthening and weakening.

WHO CARES?
Anyone who wants a U.S. stock market advantage. Really helpful if you agree with the following:

The stronger your stocks, the greener your P&L.
The journey to 100%+ returns begins with 10% returns.
The journey to a multi-month rally begins with one up week.
Most stocks do what the market does. (While the market can only do what its underlying stocks, sub-industries, and industries do.)
80/20: not all information is created equal. (Press buttons, not balloons.)

Following are galleries with page-by-page views of this report.