EB Daily Market Report - Thursday, January 26, 2023

Good afternoon!

Live Trading Room

This will be a very quick update as I'm preparing for our Live Trading Room for tomorrow, Friday, January 27th. Preparation for this event will begin this evening at 7pm ET - likely for 45 minutes to an hour. Separate room instructions will be sent out to all annual members. If you're an annual member and cannot attend live, we will be recording the entire session and it will be made available at some point over the weekend.

Market Update

Tesla (TSLA, +9.25%) delivered quarterly revenues and EPS that topped Wall Street forecasts and, as a result, it's the 3rd top-performing stock in the S&P 500, trailing only Seagate Technology (STX, +10.41%) and Steel Dynamics (STLD, +9.59%). Steel ($DJUSST +5.22%) has been one of the hottest industry groups of late and it trails only automobiles ($DJUSAU, +7.13%) today. STLD is using this industry strength to its advantage, breaking out of a bullish cup with handle pattern:

The recent uptrend continues and all of our major indices are higher, led once again by the NASDAQ, which is now up 9.17% month-to-date.

All of this action tells me the cyclical bear market bottom is in. A bit more bullish action in the near-term and I believe we'll have our confirmation. Historically, the January 26th through February 3rd period has been quite bullish and this covers tomorrow and all of next week. The S&P 500 has annualized returns of 34% since 1950 over this 9-day period. The NASDAQ produces annualized returns of 37% since 1971 over the same period. If history holds true, the bears are going to be in trouble as a very important breakout could be the result. 4100-4110 is a significant price resistance zone on the S&P 500, in my opinion. The key level on the NASDAQ 100 is 12150-12200.

I continue to maintain my long-term bullish stance and I'm growing much more bullish in the intermediate-term given the January rally to start this year.

Happy trading!

Tom