Mosaic Chart Alerts

The S&P 500 delivers a historic rally.

In this post, I’ll focus on setups that I’m monitoring for both long and short positions. With a chart and short write-up, this is a quick way to scan and plan potential trades.

These ideas are the end result of my process to identify stocks offering the right combination of growth fundamentals along with a proper chart setup.

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Stock Market Update

For just the tenth time ever, the S&P 500 logged back-to-back calendar year gains of over 20%. With 2024 officially in the books, the S&P 500 finished the year up 23% which followed 2023’s 24% return. It was the best two year stretch of returns in over 25 years (chart below). The S&P also notched 57 new record closing highs during the year, with Wall Street strategists constantly playing catch-up to the rally in stocks. Despite several sudden spikes in volatility, the largest drawdown during the year was just 8.5% for the S&P 500.

Chart from The Wall Street Journal

While the S&P 500 delivered a strong annual gain, recent stock market weakness is persisting during a favorable seasonal period. While the S&P kicked off the Santa Claus rally period with a strong gain, it has since pulled back and is currently trading below the 50-day moving average. But the average stock is still faring much worse. December was on track to see the fewest number of stocks outpacing the S&P on a monthly basis since at least 1986. The broader market also shifted to a regime of seeing more new 52-week lows than 52-week highs. You can see that in the chart below of net new highs, which have been stuck in negative territory since mid-December.

Including today, there’s still two days left before the Santa Claus rally period officially wraps up. But given poor market breadth, there hasn’t been much recent breakout action. However, there are several new setups developing in some of the market’s best performing sectors from last year, including crypto, semiconductors, and cybersecurity. Keep reading below to see:

• Open ETF positions.

• Open stock positions.

• Chart analysis for new trade ideas.