These Are the Stocks to Buy In 2026 (with JC Parets)

29:35I couldn't think of a better combination. I can't believe this hasn't bounced. Well, I guess what? This will never be where it was. This is a secular bear market. Yeah. I agree because the top is the advent of the internet. The internet makes people miserable. Nobody answers questions. People are miserable on the internet. that this will never be over 110 in our lifetime. I guess we'll see. My point is the humans are angry and the stocks that represent the behavior of those humans are making all-time highs. I love that combination. Okay. I like that's a good counterpoint to the people that are talking about bubbles and euphoria and all these things.

30:14We'll get there. Yeah, yeah. Okay. Okay, so let's do a little, let's have some fun here. We're looking at micro strategy. Hitting new lows more recently. And this was, look at that top right when that cover came off. If you want to go to the next one, zoom in on that cover. You know, right there, the Bitcoin alchemist, the volatility virtuoso. Michael Saylor. Michael Saylor. So just look at where that peaked. Right? That's January 30th, 2025. That's a year ago next week. Yep. So that's not a coincidence. Do you have a relative chart, Joseph? Settle down. Here we go. so um micro strategy relative to bitcoin oh so this is a ratio of the price of micro strategy which is doing the ponzi with the bitcoin and then the actual price of bitcoin right and then notice when it peaked it peaked on november the 20th of 2024 does anyone know what happened the day before that the coronation of donald trump no wait the day before what i'm I was like, November the 20th of, Thanksgiving, November the 20th of 2024, the ratio between micro strategy and Bitcoin peaked.

31:21In other words, up until November 20th, if you wanted to put on a leverage long position in Bitcoin and make money in Bitcoin, micro strategy was the preferred vehicle. the ETFs. No, that was January. Oh, that was, that was January. Yeah. What happened that day? November the 20th, 2024 was the peak and it crashed after that. The day before that, November 19th was the day that option started trading on Ibit. Oh, that's good. Oh, well, that explains it. Price discovery. Dude, no, no, no. It's the opposite. It's not necessary anymore. You don't need this anymore. You don't need it anymore. So poor fluous.

31:51And by the way, it's not a Ponzi scheme, literally. I'm not smart enough to understand. I don't care. It's a Ponzi. I hope it is. It doesn't matter to me at all. Right. So my point is, not only does it not matter, I got long yesterday. Your long micro strategy? The Ponzi. Yeah, throw it up. There it is. Wait, it's a false breakdown? You're short the Ponzi? No, he's long. Long the Ponzi. It's not a Ponzi. Okay, fine, great. No, but he hopes it does. It doesn't matter whether it is or not. Jesus Christ, it's a digital assets treasury corporation. Yeah, sure. Okay. So you think we're seeing a false breakdown in strategy?

32:23So, dude, I'm telling you right now, how long have you known me? Every year is the same shit, man. At the end of the year, between that Christmas, New Year's, you got the B squads on the desks. You got like nobody's, you got, there's no liquidity. Tax law is selling. They're puking stocks up. There's just low liquidity. Weird shit happens. And then you get back to work and they squeeze them higher. And going into that week, I'm like crypto, crypto, Coinbase, MicroStrategy. I didn't know. I had to see confirmation and then we got it. So I got long yesterday. Pretty aggressively so, I might add.

32:58Let's see how it works for me. I'm going to keep a tight stop. Very tight stop. You like this, the way this one looks? Because it's a false breakdown that's now recovering versus the Coinbase. or just buying a Bitcoin ETF? I'm in Coinbase already also. Okay. But I put on a micro strategy position yesterday, which I hadn't in a long time. Okay. All right. And then if you want to throw up the Bitcoin. Wait, JC, what does a tight stop mean to you? I'm curious. Well, I'm using a time stop because it's either going to go or it's not. And if it's going to go, it's going to go now. So I might be out of this tomorrow or next week.

33:29Wait, is a time stop like a mental thing? Yeah. Oh, okay, okay. Yeah, yeah, yeah. I like it. So if it doesn't work now, you're out. Like you're saying, I'm in this for two, three days max. I love that. Well, I'd like to be in it for three months, but if it doesn't go in the first couple of days, I'm out. I got it. Right? Because if trades don't work immediately when you think they should? Not all of them, but this one definitely. Yeah. Okay. This one's either going to go or it's not. This looks good to me. So there's your anchored VWAB from the highs last year. You know, you're looking at 97. If we're above 97, the squeeze is 0.

33:58I mean, this is like, this is like, I don't know how meaningful is that moving average. Is that a 10-day? That's a VWAP. That's an anchored volume-weighted average price. All right. So they're coming for the stock. They're coming for their coin. That's right. That's right. So funny money, long. And then I just want to remind everybody that we've seen this story before. There's Fat Fred Savage right there on the cover of Forbes. And then remember what happened? Oh, my God. Didn't you make that up? Yeah, that's the Josh line. Yeah, I did. Sam Bankman freed Fat Fred Savage. It's funny. That was you.

34:31Yeah. It's funny me calling anyone that. But, okay. Got it. Uh, he's in, what is he gonna do about it? Nothing. He's playing chess with Diddy. Yeah. I'm not worried about it. All right. So my point is that we've seen this before, right? And we'll see it again. So it's not like funny. Ha ha. Not like, no, no, no. Pay attention because we will see this again. This is not like a one and done. This happens again and again and again. I probably have the greatest collection of magazine covers probably in the world. I don't think anybody has a collection like mine. I have magazines that go back to the bicycle bubble of the late 1800s.

35:04I got some shit. Yeah. Right? And it's the same story again and again and again. What? The rise and fall of a theme. All kinds of things. All kinds of things. All right. You're right. That is one of the constants forever and ever and ever. Will never not happen. I hope they never stop. I'm going to bring them. Next time I'm on the show, I'm going to bring a bunch of magazines and we'll look at them. I have some good stuff. All right. So this was in November. So this was very creative. The best ones usually are. So this one is a guy doing a yard sale. down the mountain, and then they turned his skis into red arrows pointing down how the markets could topple the economy, Josh.

35:44What does that mean? Like if the markets get crushed, the economy will get crushed with it? Notice, hold on, go back, go back, go back. Notice the map of the world on his ass? That was good, right? It's really good. It's snow comprising the continents. So good. I wouldn't have seen that if you had pointed out. I know, so good, so good. Anyway, so the rule of thumb is whenever there's a chart on the cover of the magazine, you buy stocks. Yeah. Right? So I polled all my associates, and we agreed that that was a chart, technically, with the arrows. Yeah. And so here's the returns of stocks since then.

36:15Oh, micros. Micro caps up 15%. Trannies up 12%. Small caps up 12%. Mid caps up 10%. We don't say trannies. We do this every time. Transportation Americans. We do this every time he's on the show. They don't like it. Transportation Americans. Disrespectful. So stocks absolutely ripping since then, because of course they are, because if these British journalists are telling you that the stock market is going to topple, it's probably going to be the opposite, right? And sure enough, it was. This is unbelievable. The unanimity with which every one of these things proceeded to work. Is it surprising to you?

36:46Yeah. So I guess the economist has to wait for Q2 for markets to topple the economy. Oh, here we go. So the journalists weren't wrong. It's just a bubble. that's all so uh ritholtz is slipping into my dms oh boy you know oh boy he does that late at night sometimes yeah and so we're talking about uh this one what do you guys think about this one beware the bubble how to survive the year ahead what day did this come out is this last week this is last week yeah i just what is it even worth commenting on what they mean which bubble ai it's just it's ai every it's just a bubble all the bubbles it's just everything is a bubble You know, all the bubbles, Josh.

37:27So for me, the cover's not enough. I have to read the spiel. Got it. I have to see what they're saying. Yeah, yeah, yeah. He buys the Playboy for the articles. Yeah, yeah, yeah.

37:38I can't fade something if I don't even know. They're not even saying what the bubble is in. It's almost like this cover will be wrong or right no matter what because they're not saying what the bubble's in. That's right. Well, I gave a presentation a couple months ago, I think in Vegas, and I asked everybody, you know, raise your hand if you think we're in a bubble. and the entire room raised their hand. And I'm like, I didn't even mention an asset. Who's the audience? I don't know, like rich investors. Right. Raise your hand if we're in a bubble and it doesn't even matter. Doesn't matter. Okay.

38:06It was great. What do you think most of them think you mean? Are they thinking like NVIDIA AI? Probably. Okay. All right. Yeah, probably. Okay. All right. I mean, listen, anything that's going up that you're not in is a bubble, right? I think there are a lot of very well-known stocks that are not in tech that are definitely, if not in bubbles on their way. Costco, Walmart, these should not be 40 times earnings. Oh, here we go. Earnings. Those are not bubbles. They're overpriced. On their way. Dude, 90 % of Americans live within 10 miles of a Walmart. I'm not saying it's not a good company. Costco can't be a bubble.

38:40I'm saying historically, people didn't buy those stocks at that expensive of a price without getting their asses kicked eventually. Don't worry. This time it's different. Fair enough. All right, go ahead. All right. So last year, a year ago today, check the tape i told you that international is going to outperform the united states and the dollar was going to get smoked right yes and you said that i hope you're right because that would be really good for our industry as in financial advisors you know that would be really good so i'm curious it was said that then was it and how well for the first time in a decade my advisors don't have to explain to clients why they own anything other than the s &p 500 or the keys am overstating it no okay like that has been a conversation not every client not every year but it's like what what is the point of emerging markets what is the point of western europe what is the point of japan different people at different times nobody's asking that question right now so nobody who stuck it out that's right yeah so emerging markets x china up 35 percent emerging markets with china up 34 percent all country world index x north america up 32 percent ifa which is a lot of Europe and Japan up over 30%, you know, go down the list.

39:55If you pull back, if you pull this back 15 years and just look at cumulative returns, that trade could have like five more years to go and still not get, get to where the S and P and it may never, I'm not, I'm not telling you that'll mean revert and you'll get those types of returns. But like for people who think they missed it, what do you, what do you think on the technicals? I agree wholeheartedly with you that. I mean, this was a long time of the other side. You know, so there is. It's 15 years. And we don't need to like, if you want to see what all these countries look like, go watch the last episode I was in in the summer.

40:34It looks the same. We went through, except higher and more to the right. Right. But all these countries are up. Latin America, South Africa, Southeast Asia, all across Europe, up and to the right. India, Japan, China now. I love that. higher and more to the right yeah higher than they were in the summer and more to the right right so the united states put up historic numbers 20 year for the nasdaq 17 year for the s &p 500 and the u.s was one of the worst countries on the planet yeah and that's and that's like even with all the ai that people were saying there's no ai stocks in the like right like europe has asml that's it and uh that's it be well is there a plot is this an advertisement So I dove into this in our chart.

41:19This kid put a banner ad into it. Amazing. Yeah, so this is brought to you by our sponsor, Chart Summit 2026. No, I mean, because I dive into all of these charts. You're the only person that this is allowed for. All right, go. Go download the deck. Go download the deck from the presentation. You have friends on this list. I'm going to see Katie Stockton in 45 minutes from now. Well, tell her I said what's up. She was great. David Lundgren Frank Capillari Straz and I gave a great presentation go download the deck check it out hey this is a this is actually a pretty damn good roster I know how'd you get all these people drinking buddies is that is that Max Kellerman on top right who is that Max Kellerman talking about boxing John Netto market wizard so you can download my deck and all the other decks and watch all the presentations it's totally free so go check that out all right chartsummit.com all right so these are in your opinion like some of the more interesting technicians who made presentations.

42:14I mean, listen, Katie's great. Frank is great. Neto, Lundgren, they're all fantastic. But I got to tell you, me and Straza's presentation was pretty, pretty good. Did any of the technicians disagree with what you guys are telling people? You know, people weigh different things more heavily and lighter. Katie uses a lot more oscillators than I do. For example, she uses the Ichiro clouds and all that stuff. She's a DeMarc person. She's a DeMarc. Lundgren looks at things from a different perspective. frank cap as well so like you know check it out enjoy it ryan dietrich as well yeah um all right so i i don't want to get into all of the different international markets and everything like that we've done that before we go over it on the presentation go check that out there this is the big one uh these are the assets uh throughout uh 2025 and the returns bitcoin was actually down bonds flat s &ps put up record numbers with the queues and just massive underperformers look at silver why you say record numbers what do you mean by that 70 return the s &p 500 double the annual average return yeah i'd say that's that's nowhere close to record but it's a good it's a good year it's not a record amount of games but it's a it's a better year than the average yeah of course a great year no one's gonna say it wasn't a great year it's a great year but but underperformed practically everything else look at that look at this though silver up 150 percent gold up 65 emerging markets 34 developed stocks 32 like that's where the real money was made last year yeah it's i mean it's obvious yeah so it's too late my barber asked me this morning the haircut from uh dominic how early do you get a haircut the balmore barber he wants to know if he should buy more silver seriously yeah so he said he said i i'm hearing uh i'm hearing it could go higher from here are you making a joke or you swear my life and i said i said dominic i definitely go higher from here yeah i don't i'm not gonna be the one that tells you that's right but just understand like it was 16 it's 90 you know i'm saying like like it's not early so i mean i don't know what's telling anybody we'll get to the silver in a second um let's stick with the stocks for right now i just kind of wanted to put things in perspective look at the industrials and the transports both of these indexes are making new highs this these indexes go back to the late 1800s they've never been higher closing at all-time highs together that's so bullish so it's less of a signal i'm getting you know emails from you know uh journalists and stuff like that like oh big signal it's like no no it's not so much a signal as it is confirmation yeah confirmation of what confirmation of all the other things that are suggesting and have been suggesting that we're in a bull market this just confirms that all those things are in fact i say something about dow theory though this is my this is my uh this is like anecdotally what i find when it is in the favor of the bulls people will point it out and then when it's not because transports are doing badly people just forget about it like who cares um do you do you get that sense also I feel like just nobody cares.

45:01And I'm the old man in the room telling you that this is the most important thing that you need to be watching. Because I want to point out, we had a really great run of years where the S &P was making highs or the Dow was making highs and the transports were not. And people like me very cleverly substituted the socks. Yeah. And I would say semis are the new transports anyway. Yeah. Don't care that the airlines don't look good. And like the markets did great. like it it didn't matter that we didn't have that confirmation i guess is what i'm trying to say now we have it okay convenient these divergences come at peaks like regularly even before covid trainings were already rolling over look at the uh never change look at the new york stock exchange composite making all-time highs these are the stocks that trade on the world's most important exchange you know how many mega cap tech stocks there are on the new york stock exchange three United States mega cap tech stocks, I should say.

45:51You got IBM, Salesforce, and - Cisco? No. IBM, Salesforce, and there's one more. Oracle. Those are the only three mega cap tech stocks on the New York Stock Exchange. Meanwhile, the NASDAQ, you got NVIDIA, Apple, Amazon, all those others. Taiwan Semi also trades on the New York Stock Exchange. SAP, Novartis. You got over a third of the New York Stock Exchange is international companies. You're getting a lot more cyclicals there. you're not getting this mega cap tech exposure that you're getting in the nasdaq the new york stock exchange is to me the best universe of stocks in the world okay that's not obviously not bearish i don't know if it's necessarily bullish oh wait jason let me ask a question when people say to you i am uncomfortable i am leaning bearish because everything is working what do you say to that person i would say go back and study history meaning meaning the best time to buy stocks is when it's making new highs we have the we have the data we have the math right we know that asset prices trend like there's a lot about the market that we don't know but there's a few things that we do know and we know that asset prices trend so if you're constantly fighting trends then you are the sucker right you want to be the house asset prices don't oscillate right they don't it's not up down up down up down they're going up or they're going down or they're doing nothing if you if you are the type of personality where you think this is as good as it gets, you will not make money over time.

47:16I forget who said it the other day and said, you know, if you want to manage money, you want to manage your portfolio, you better be, you better be comfortable with buying things after they've already doubled. Cause if you're not, you're not going to last. Yeah. Right. Because, because there's a reason why something's doubled and you'll find out later and you're not smart enough or informed enough to know yet. And you may never be by the way. Right. So this is the problem with using intuition in the markets, it's like, it's so obvious that nobody wants to buy something that was just five and now is 10.

47:48But you know, what's so funny about this? Like when I talk that the market is bullish and people accuse me of being bullish or naive, it's like this, I'm not giving you an opinion of what I think will happen in 12 months. I'm describing what is happening today. And objectively, if you're fading every episode when we're bullish because the stock market is bullish, you're going to, you're not going to make any money. Do you know, um, we launched our RIA in September of 2013. And it's been a long time, but somebody once sent me the tweet where I, back then people used to go on this thing called Twitter and announce stuff.

48:22Um, I tweeted a link to my blog post announcing the new firm, or maybe it was Barry's one or the other. Somebody sent me this and like, there were like 50 responses. Congratulations. So happy for you guys. But like half the responses were top, top, top. 2013. Yeah. Where was the, was the Dow at 18 ,000? That was the end of the last decade. Remember? That was, they were talking about a lost decade. We were just breaking out. Top. Barry and Josh just launched an RA at top. Really? Yeah. Top? Sure. With like a hundred million. But the reason why they were saying that is not, they weren't saying that because like they're making fun of us.

48:59They're teasing us. They're saying that because in 2013, the market had finally come all the way back to the 07 high after having been cut in half. That's why they're - And 2020 and 2009. You have to buy tops. Yeah. Because they're probably not tops. That's right. It's very hard to do. People think that the top of the chart means that there's resistance. It's the opposite. Well, people are out of their f***ing minds. They think it's a personal top for them. Yeah. They think, here we go again. Yes. Yeah. Right. Like, I'm going to top it by buying. Just my luck. Right. Of course I buy. You're not that important.

49:32So to me, it's a market of stocks. So we look at the S &P, the Dow, the NASDAQ. You know, we look at the Russell 3000. It's a market of stocks at the end of the day. I know you've got a ratio of the smallest of the bigs. Yeah, I'm getting there. I'll get there. So here we're looking at the percentage of stocks on the New York Stock Exchange above their 200-day moving average, hitting 52 % yesterday. So that also happened in 2021, though. That's like not always great. More stocks in uptrends is not a bad thing for the market. but it's not always a great moment to buy. That's all I'm saying. On average of this.

50:08All I'm saying is that. It's not always 2021. All I'm saying is these lies that they were telling you in the fourth quarter about how it's weakening breath and market deterioration. It was just sour grapes. What they were saying to quote Jeff DeGraff, he called it sour grapes. He was right. It's just that the concentration of returns up until that point was so strong. That doesn't mean it's weak market breath. It's that the concentration of the best stocks. Amen, sister. It's two different things. We know that the average return one year later is higher at an all-time high than on all other days.

50:41We know. So we know that for a fact. So yes, obviously, not always. Obviously. And also, most of the time, crashes don't start from all-time highs. And if this is the top right here today and the market weakens and it starts to deteriorate, we see distribution, we see selling more 52-week lows, we'll see it. People are like, oh, 1987 came out. You could change your mind. People are like, oh, 1987 came out of nowhere. No, the market peaked in August. The crash wasn't until October. You know what else people assume that, like, the typical investor is a lump sum investor? Like, all right, here's everything.

51:13Putting it all in today. But Jesse, say this loud. Stocks crash from oversold conditions. Stocks crash when they're in downtrends for the most part. Yeah. They don't happen overnight. Yeah, that's true. Yeah, that's right. Yeah, that's right. Let's keep going. So here's a really interesting one. So this is, so the NASDAQ hasn't made a new high since October, but this is the NASDAQ 100 QQQ, but NASDAQ stocks 101 through 200, which is the NASDAQ next gen. I don't even know. What is this? This is, this is an index. This is 101 through 200. This is like zoom. This is the next hundred. Like the smaller tech stocks.

51:51Oh, that's it. So it's QQQJ. It has an ETF. Like Peloton. Like what's in here? I'm curious. Have you ever looked at this? Yeah. Back in the day. So these are the next 100 names. So you're looking at companies between 20 and$40 billion in market capitalization. All right. So these are like big tech stocks, not big enough to be in the NASDAQ one. This could be like Datadog or like, I'm trying to think like what would be. So you're going to get, you're going to get. Here we go. Sandisk, eBay, Fiserv, Teradyne, United Airlines. That's weird. Coreweave, Expedia, Kimberly-Clark. There's some weird shit in the NASDAQ these days, but that's it.

52:22You're getting four times the healthcare exposure. so a lot of these biotechs are not big enough to be in the nasdaq 100 so you're gonna get a lot more health care here so that certainly helps dude how weird is this dollar tree and ulta and united like there's a big trend like you know walmart switched from the new york stock exchange to the nasdaq they're all bouncing from the nicey what's going on so they want to be seen as uh growth companies not as blue chips that's like the nasdaq that's the wave nasdaq's got the crown Yeah, I don't think so. So the point is, just because some of these big ones aren't working doesn't mean that tech stocks are not working.

52:57So it's hilarious. So this guy, Ron DeSantis, right? My understanding, I think he's the governor of Florida or something like that. You are correct. So this guy's talking about market breath, talking about how it's the MAG7 economy and everything like that. A funny thing happened that day. Is this real? A funny thing happened that day. That was the day that the MAG7 stocks peaked on a relative basis and have gone... Can you read the tweet? You want to read the tweet? Yeah, you read it. The Magnificent Seven economy, has there ever been a time in which the market was as skewed towards one sector and really one aspect of one sector as it is lately?

53:32So funny thing happens... October 29, 2025. Thank you, Governor. So funny thing happens. So not only was that not true, right? He either didn't bother to count or he was lying. Either way, not acceptable. Since then, practically every stock is going up except those. Yeah, he should revisit that tweet. What a chart. So do you think that we're on false breakdown? Are we on false breakdown watch? Or do you think that it's got lower lows? Here, go to the next one. So what we've seen since then, the NASDAQ has yet to make a new high and technology has massively underperformed in that environment. But, and you know I like big butts.

54:05This is a big butt. Throw up the next one. But semiconductors make an all-time high on a relative basis. How bad could it be for tech if semis are still rolling? It's a software issue. It's a mega cap issue. But if semis are rolling, how bad could things be? So you're buying the weakness of mega cap tech? I personally, I mean, I bought Ondus recently. I don't know if that is. But that's like, it's small communications equipment. I'm talking like Microsoft. Like, are you buying the weakness of Microsoft? I am not. I have not yet. Microsoft looks heavy. I am not yet. I think that this is going to be a process.

54:39Meta looks lifeless. I want to look elsewhere. Microsoft is worse than Meta. So let's talk about where I do want to look, right? So go to the next one. And as I mentioned, the world looks great. You know, it's not a bull market for America. It's a bull market for Earth, right? The planet that we live in. Bro, no. Earthlings. No, no, no tiny Lithuanian stocks today, please. No, no, no. We're not going to go do this country thing. Check the tape. Go back to when I was in the summer for the 200th episode. And then all of those are just higher and more to the right. Yeah. So we don't have to do this again.

55:11The world's making all-time highs. And if you exclude America, also still making all-time highs. We can move on. All right. So what are we going to buy? So this one, to me, I think this is a big chart right here. Throw up the small caps there on a relative basis. So this is the Malachi Tony market is what I call it. Just give the ball to the little guy and let him run with it. You know what I'm saying? Shout out to Tony. I did this on. You got to get him on the show. I would love to. I don't know what we would talk about, but go on. Anything. I did this this week. JC, I'll make the case for this ratio.

55:41The roster, the 2 ,000 versus the large ones. That's going, dude. It's working. This is— So, you know how you said asset prices trend? This one oscillates. It does. The Russell sucks. No, the relative ratio. Sucks everybody in. We're talking about a relative ratio. No, I know. I'm just saying. Small caps suck everybody in periodically, and then they roll. Is it going to stick this time? Yeah. I think so. You want to walk through it together? Given how bearish I am, it'll probably stick. I think this might be the time. I really do. I hope it's true. Well, why don't we do some of the parts analysis of that?

56:12So, let's look at the index. Look at this base. Yeah. This thing has done nothing since the end of 21. Bigger the base. Can I get one of these? Can I get another one of these? JC, bigger the base. What do we say? The bigger the base, the higher in space. Louise. Is that funny? No, I like it. So I asked Alan Shaw, rest in peace, before he passed. I'm like, where did you learn that? Because Louise Yamada says she learned it from Alan Shaw. And Alan Shaw was older. And I'm like, Alan. That's Zweig, isn't it? No. You always quoted Louise. Way before. Dude, Alan Shaw was like a zillion years old. And he learned it from his predecessors.

56:44and he started in the 50s. So his predecessors were trading in the 30s and 40s and they taught him that. Wow. So this has to go way back. Huh. That's wild. I did the homework. I did the due diligence, right? So small caps going up and this is not oscillate, Josh. Look at this long-term chart. This is from the lower left to the upper right, bro. Yeah. I think I meant like relative to the S &P. Like there are times that Russell outperforms, but it doesn't last long. I guess we'll see what happens. And then relatively. Because look, put up the communist ones. So these guys discriminate, right? Because you can get, in the Russell 2000, they'll let anybody in.

57:19But in the S &P 600, you got to be making money. Yeah. How dare they? Only profitable companies. Yeah, you got to be making money to be in this. You get more financials in the 600, I think. So what's hilarious about fundamental analysis is that the ones with the Russell 2000, that you don't need earnings, you could be losing a fortune. Don't matter, you're in. They're doing a lot better than the companies that are only in if they're making money. so if you're only buying good companies you're missing out on the best performers yeah good companies right and then you could just look at the um the composition you're getting uh you're getting you're getting a little more health care uh and you're getting less uh industrials a little bit on the russell 2000 but relatively comparable so i just wanted to show you're getting uh a lot more consumer discretionary in the s &p 600 you're getting russell 2000 is for the bigger small biotechs.

58:05Look, it's 19 % biotech healthcare, which is mostly like profitless or barely profitable biotech. Yeah. It's 18 % in the S &P 600 banks. Yeah. So, makes sense. Yeah. Let me say. And banks is still pretty big in the Russell 2000. Josh always says it's only regionals. Let's do some of the parts. Let's do some of the parts. So, first of all, this is the small cap momentum index making all-time highs. Okay. Okay, so this is not bearish, right? These are the momentum names doing well that tends to happen in healthy market environments. Now go to the industrials. All-time highs for small cap industrials.

58:44All-time highs for small cap materials, right? All-time highs for small cap technology. So when people are telling you that small cap stocks aren't working, maybe your small cap stocks aren't working, but clearly small cap stocks are working. We can keep going. And then, you know, the small cap financials that you said, come on, is there a more important base in the stock market right now than this one. How does this one resolve? Way higher. It's going to go, right? Way higher. What are the other ones doing? Wait, wait, time out. What the hell is a small cap financial? Regionals. That's it? There's 260 of them.

59:12Not even like subregion, like thrifts. It's a lot. Like community banks. It's a lot of small banks. Yeah, yeah, yeah. There's some other things mixed in there that are a little bit lost, but it's banks. It's Jackson Financial, Lincoln National. I own, I think I own, I think Kinsale is in this group. Piper Sandler, Stepstone. We know these names. We know some of these. All right. I want to dive in there. You also got a couple hundred biotechnology stocks. Biotech hitting the highest level since 2021. Healthcare, big component. I don't like to trade charts biotech given the nature of the tape bombs, good and bad.

59:46Just, you know what I mean? But if you filter by companies that are above a billion dollars, you're eliminating a lot of that risk. And if you put together a basket of biotech, you should see my portfolio over the last year. You'd think I'm some kind of scientist or something.

1:00:04Like, I feel like Dave Chappelle. Yes, scientist, you know? So, and then look at discretionary. Look at that basin discretionary. This is small cap discretionary. Looks great. And then look at small cap energy, right? And then I want to dive into energy before we hop for the day. Okay. So this is, I remember where I was in the summer of 2008. The last time energy was here. I know, dude, this is like, I can't imagine this not being V trade of 2026. You and me were a beer bar. This will not be on any magazine cover anytime soon. I'm waiting for it, man. I'm waiting for it. Well, that'll be the end.

1:00:36We got an Iran economist today. Does that count? I can't imagine this not being the gold of 26. Look at that base, bro. I know. By the way, gold looks just like this before it broke out. I'm telling you that I'm bold up on oil and gas. Here you go. Let me see. Yeah, so I'm long this stock, Exxon. Come on. it's going to i mean i i just i don't i don't understand how it's not 150 already i i know it moves slowly it's a very big stock it's a big company it's a big company okay um uh oil services look at it trying to get above those oh two lows i'm gonna pitch you an oil service name in a minute okay all right yeah um and then look at the relative ratio yeah between xle and the s &p 500 yep right the sx the energy versus tech looks very similar it's very good And then here's one I like.

1:01:24I'm long this one. This is Solaris Energy. What do they do? I don't know. I'm just kidding. I know you don't know. Who cares? Allegedly, they're in the oil and gas space. But I don't know. Maybe it's a Ponzi scheme. I don't know.

1:01:41I have no idea. Why would I? Okay. All right. I mean, they're doing something, right? How many energy stocks do you know that look like this? Not a lot. Right? The refiners look like that. They look good. And then, so this chart comes from macro charts. Great. Shout out to macro. He's a great follow across the board. Who is that? Who's macro charts? Yeah. He's anonymous, but he's basically like the conciliate to like a bunch of like big hedge funds. Like he's the real deal. Okay. So this is a chart from him. This is the oil silver ratio going back to the 60s. Oh, strong buy. Strong buy. Because people are talking about silver.

1:02:18Oh, did you know that transistor chips require a certain amount of silver? Okay, so if that's why you're really bullish on silver, then you can buy oil here. If that's like really the story. I think this is an interesting way to look at things, that if you're bullish of energy, this is a bullish art. What do you think of this? I forgot to put this in the doc. So I grabbed one chart from Todd, our boy Todd Sohn. Look at how hilarious this is. Todd said this one's for the D-Gents. It's the ProShares Ultra Short Silver. So obviously this thing has been going vertically down. Yeah, crushed. Right, it's crashing.

1:02:50but normally nobody buys this. Like there's no volume until people are trying to call it desperately in silver. Desperately. Desperately. Like that's a dope chart. Throw up the silver. I got that thing. Goddamn. So this got a$100 roll. Yeah. $100 roll written all over it. I think that'll happen. All right. So let's play. And then what? Let's play Permal Bear. All right. So what, okay. So what's going to change all this? What's going to change Precious Metals? What's going to change this massive international? Dollar breakout hire. So we came into the year looking for a breakdown in the dollar, right?

1:03:23Long euro, long British pounds, long Swissy, long EM Forex, and that worked out great. If the dollar - Last year. Last year. If the dollar breaks out above 100, I think that that's a problem. And we're starting to see a few cracks. And not every crack needs to turn into a market crash, but every major bear market - I was going to say that could give you like the correction or the dip that hasn't happened yet. Every crash, every correction starts with a crack or two. Here's a couple. Discretionary staples not making new highs with the S &P making new highs. The Magnificent Seven hitting new four-month lows today on a relative basis.

1:04:00So if you're looking for a culprit for this particular cycle, that would be it. And then here's the Frankenstein, right? So it's the last charge. So this is the Frankenstein trade where the bonds have never been more dead. Literally dead. And stocks like that, right? We talked about this the other day. Vanguard put something out saying the right portfolio asset allocation for this year is 40 stocks, 60 treasuries. And I can't believe, I can't remember ever hearing them say that. And I didn't even bother to track down what the rationale was, but just that idea that like somebody's even saying that is interesting to me.

1:04:38So that's weird. They're not looking at the charts. They obviously have another reason that they're saying we're going into a midterm year. We're in a midterm year, the worst of the four year cycles, even though technically that's what I was looking at. Technically, when it's the second term. The psychos. Joe Davis. Yeah, he's a midterm psychos. I'm kidding. Year six for second term is not as bad. It's actually pretty good. But nevertheless, midterm year, historically not great. So one can argue, what should we be looking out for for things changing? I think that that discretionary staples ratio, I think tech underperforming.

1:05:07Dollar rally. Dollar rally. And I think bonds waking up because if they're, look at how boring bonds have been over the last few years. Dollar rally. forget about the implications for stocks. That's really bad for people that are chasing silver here. I think it's bad for international stock investors. I think it's bad for silver, precious metals, rocks in general of any kind, whether it be of the precious or base variety. Can we go back to the previous chart? Yeah. So I think this is really interesting, the MAG7 one. I think up until now, people were waiting for like the dot-com divergence where you see the rest of the market and only the MAG7 are the ones that are left standing And then of course we know what happens next.

1:05:47It would be interesting if it's the reverse of time, if the leaders go first and now they pass the baton to the rest of the market. And it's like a sort of fake handoff. And then they all come tumbling down together. Maybe that would catch every, that would catch me off sides. I mean, that'd be interesting. If the dollar is above a hundred, I think that's a big problem. If you start to see volatility pick up in the bond market, that's a big problem. You know, generally the trend is up for stocks. Like we want to be buying stocks. We want to be buying breakouts. And I don't necessarily think it's a binary outcome where like, Oh, everything's going to get crushed i think this is going to be a k-shaped market look what i see what i did there come on come on that's pretty pretty good huh pretty good we like the case so i think that rather than 2025 everything went up some went up more than others i think we could be very high likelihood that in 2026 we can have huge winners huge losers and some that kind of just trade flat i think that would be a very high likelihood that's what i was doing i agree i think most investors be okay with that as long as they think they're going to be the ones that are in the ones that work i guess i'll see be selfish right hey what a tour de force ladies and gentlemen jc peretz what i'm seeing thank you and uh we will include a link in the description so people can check out your slides straza slides from stock market summit we did we went out we did hours i mean josh and batnik and myself we could be here all night but they got things to do i got nothing to do they got things to do do you have your brokerage account open and logged in uh no all I'm going to pitch you some stocks.

1:07:14You might want to buy a couple of them. Oh, I'm going to talk to my wife. I'm not pitching you, but I just want to get your take on these. Sean and I keep a list of the best stocks in the market. You know what we're looking for. The general idea is we buy strength. We're not looking for reversals and pieces of shit. We're not bottom fishing. Is that on the fact sheet? Yeah. We're not storytelling. We're not listening to conference calls. It's not that we don't care. It's that that's not the selection criteria. Okay. So might have a personal interest in learning why a stock is going up, but it doesn't start there.

1:07:46Okay. I want to show you a couple and just hear what you think. It doesn't really matter what I think of the technicals themselves. Morgan Stanley's been on best stocks in the market list, I think, consistently since the summer. It's probably been a good seven, eight months. Man. And it is just the move today is obviously earnings driven. So let's assume a little bit of this today's move fades. this is as good of an uptrend as I've seen in this stock since I started doing this 30 years ago. You normally don't see stocks like consistently for that long of a period of time sitting above the 50 day.

1:08:21Look how well, look how well behaved, look how well behaved this is. And it's not that there haven't been like rough weeks, but like this, this stock has given no one any reason to sell it whatsoever. If they're just focused on price, what are your thoughts i mean financials in general have been a monster right european financials um japanese financials us money center banks all of them just absolutely ripping so it's more about the group that it's in and less about the stock itself i agree these don't these don't really separate that much from each other large cap us financials they tend to do what they're all doing i agree with that for the most part yeah i mean you know this one's not your favorite it's not that it's not my favorite it's that they're all kind of like this right where like they're extended you know looking bank of new york melon absolutely ripping look at all these european banks i mean the trend is up and for me it's less about trading morgan stanley and more about thinking about the implications you know if these financials are up not just the united states but globally like i'm old school like i came up in the 2000s i was there for the great financial crisis we don't have bull markets in america without financials and in the rest of the world it's even more egregious when you look at the holdings of the companies in those indexes so like i look at an msjc and i just in my mind well how do they make money they have everything in their favor there are ipos there's mna the ftc isn't saying no to anything unless trump wants to get something for himself out of it um so there's deals all over the place you could bring companies public asset management revenues are ripping because asset prices are at record highs um they make money as a as a treasury bond dealer, I think, they're in that business.

1:10:02Net interest margins, spread businesses, like proprietary trading, fixed income commodities, currencies, there's nothing they don't make money from. There's nothing that they're involved in that's not doing well right now. And I think that's the same with it. I would say 189 is a big number there. Big, a lot of market memory there going back, you know, to the great financial crisis highs. So if we start falling back below 189 and kind of holding below there, that could start to turn into a problem. But if you're above 189, I mean, another 50 % higher? Why not? Basically the same chart, Goldman Sachs.

1:10:39Yeah. Morgan Stanley's been an easier ride. You've had some trendline violations here along the way. I just think that's the nature of it being a higher baited name than Morgan Stanley, at least these days. But like, huge winner. Same trade. Same trade. Okay, I'm with you. All right, I grouped these together. Yeah, the trends are not down. Here's a question. Next chart. You can't buy this with a straight face, right? Why? I don't know. I can't. So this KLA, this has been on the best stocks in the market list for a while. We wrote it up a few months back. It's been like a massive home run. This is parabolic to me.

1:11:18What do you think? You can't buy this stock. No, I cannot. No way. Does the presence of a gap like that bother you? uh no that's a baby gap would it stop you from that that would not be the thing that would stop you from from pushing by on on a kla no i'm looking at like 15 and a quarter if we're above 15 and a quarter i think you're fine you know that gap is just evidence of you know uh relentless uh buying pressure people are like oh jc it's overbought it's like well how can an overwhelming amount of buying pressure possibly be a bad thing i don't know i don't understand this is reacting to Taiwan Semi's news today.

1:11:54That's why it gapped today. It can be a bad thing in the very short term, but who cares? Semiconductors are making all-time highs on a relative basis. So the fact that you're putting up a semiconductor stock that's making a new high, like it better be. Yeah, yeah. No, I agree with that. Next one. Here's another one. We've been writing about this one all year. LAM Research, LRCX. Not as parabolic as KLA, but basically the same chart. Yeah, I mean, like what do you want me to tell you? I mean, it's a bull market. The question is, can you hit buy on a new trade in this stock today? Or you would not do that?

1:12:27I mean, I wouldn't today because that's not how I trade. It doesn't mean that it can't go higher. Like, 236 is a big one here. You know, this goes back to the dot-com bubble highs. 236 is a big one. So if you could click. Oh, you're looking at 25-year charts right now? Yeah, all of these stocks were, like, also part of the original dot-com bubble. Me and Leonardo Fibonacci de Pisa are getting down right now on this laptop. You know what I'm saying? Okay. You know, 236 is the big one. 381 is next. So if it could stick that 236, yeah, it could keep going higher. But, you know, expect volatility.

1:12:59I mean, this thing's going to be down 10 % in two days. For no reason. For no reason. It's just going to happen. In a week. Easy. And it'll shake out the type of people who bought today without even thinking about it. That's right. All right. Next group. Here's CBRE. In 45 minutes, I'm going to go pitch this with Sean at the New York Stock Exchange. I'm not going to tell you the fundamental story. It's commercial real estate. Thank God. which everyone obviously hates and thinks is a worthless asset class. And this stock doesn't give a shit what anyone thinks. And I love these types of setups where they're consolidating below resistance for a while and knocking on the door.

1:13:34Me too. And just to me, this is so obviously going to break through. It is the blue chip of the space. It's an asset light business in commercial real estate, which is an asset heavy sector. And they were going to treat it like a tech stock because they've transformed the whole business from brokerage transactional commissions to an ARR model. Can I tell you something? And the street loves these stories. I'm buying this stock today. How about that? You just convinced me. I love this chart. You like it? Yeah, I like it. 185 is coming. I'm buying this right now. All right. 185 and then after that.

1:14:04I'm not front running the CNBC pro people because I wrote it up this morning in the column. 260. 260 after 185. All right. I don't own it yet. I might pull the trigger too. First solar. I don't know what to do with this This stock's been on the best stocks in the market list It still is These stocks are so volatile For me These are so hard to figure out where to enter Where to exit But think about it While we're on the subject of 25 year charts No solar stocks ever No solar stocks ever Because you lost money in Enphase No but That wasn't good though Dude bro If you're going to do solar you gotta do chinese so like you're either gonna go full or tan or tan the etf you ever make you ever make jc you ever make money solar stocks yes i have lots of money too i mean i've traded everything over the years but check out array but what are you what is the technical read somebody shows you this chart on a on a trading desk what's your answer to them there's nothing here it's a mess it's a mess right yeah it's messy i like array better so i can't bring myself to write this one because it just looks weird.

1:15:12All right, I have one more pair. Wait, hang on. What does CBR do before I buy it? I don't care. Great. One more pair of stocks, oil services. This is Baker Hughes. I love this break. I love this breakout. I want to buy this too. Look at the long term on Baker Hughes. This seems like pretty momentous above 50. Can't this go to 100 bucks? I mean, are they still counting rigs? Forget about all that. Do you know that - That's a thing that they do. Crude hasn't even rallied yet, and this stock is breaking out. When crude goes, this stock really goes, and that hasn't even happened yet. And why Baker Hughes and not like Halliburton?

1:15:49Well, that's my next chart. Hallibarry. Here's Halliburton. Halliburton's already gone. And the Slumberger. That's also on my list. Go to this restaurant and order the Slumberger. No pickles. Do you like this Halliburton better than Baker Hughes? I mean, I think I like energy. I'm long energy. I'm getting more long energy, you know, oil services, you know, pick which one you like. They're probably going to move together. Higher beta is going to move more. You know, if you want to get junky, go offshore drill or something like that. But like, you know, if you want to get an energy, you can get an energy.

1:16:24And there's a few ways to get the juice. You can either go down the cap scale and buy some junkier stuff, or you can be in the derivatives market with the bigger names. You know, I think either way, I think the services names could all rip this year with a tiny bit of help from crude. Nobody owns them. But you need a much bigger move in crude in order for like the oil producers to make that kind of move. I think the services can just go because they're going to go. And the refiners have been going, but... And they already broke out. Americans just... Americans don't own it. And I think that there's a squeeze to be had there, right?

1:16:56Because if everybody owns something, it's probably a little too late. The fact that the NASDAQ is 0 % energy. S &Ps are 2 % energy. Dow is 2 % energy. How much less energy could these things be? Nobody owns it. Nobody's got it. Last question, totally off topic. I just was curious to get your thoughts on it. I forgot to text you. Can prediction markets be analyzed by technicians? They're just so illiquid. Let's say they were more liquid. Let's say they became more popular and there was higher contract volume. Could you look at a yes-no chart for any subject and determine buyers versus sellers or levels?

1:17:35It's not levels. It's not levels. At the end of the day, what are we doing as technical analysts, as technicians? We're analyzing the behavior. Oh, what are we doing? Well, we're analyzing the behavior of the market. This kid's literally trading right now. I told you I was behind it. I'm in CBRA. We're looking at the behavior of the market and market participants. So if these prediction markets didn't suck so much and they weren't just a bunch of glorified penny stocks, at least the penny stock people tell you that they're penny stocks. These people are like, oh, it's the prediction markets. No, you're f***ing gambling like an idiot, right?

1:18:03Like idiots gamble. Oh, so you're not a fan. No, it's not that I'm a fan. is that they're nothing it's an irrelevant penny stocks scam like it's not anything you know um thomas pederfy came on halftime report last week and wanted to debate me the founder of interactive brokers brilliant brilliant man a great man yeah um he wanted to debate me it turns out we didn't really disagree he had made a statement that he thinks prediction markets will become larger than the securities market yeah i heard that i said multiple people have said that i said i don't think so not because there's no merit to prediction markets i think think the binary nature of them people will lose money and lose interest very quickly you remember binary options well yeah i mean is it just rebranding that that was a scam and a lot of people lost money and people went to prison what was the binary options thing what exactly i totally forgot i remember the term but i forgot what people were trading you know everybody's in buying up down on a stock everybody's every it's it's the outcome it was a binary outcome and that was what the option was and then they canceled all that because people were trying to You remember that?

1:19:05No, I don't. But Josh's point is - They're going to say that about the prediction markets. Remember the prediction markets? No, it's not going away. But people do not like all or nothing outcomes. Because with the stock, if you're wrong, you could take - All right, I'll take - I'm an investor now. As a trader now, I'm an investor. No, no. My max loss is 8 % and that's it. With the prediction outcomes, for the most part, not for the most part, unless you're buying and selling, unless you're trading them, you're right or you're wrong. You make money, you lose money. Well, there's no assets. So there's no liquidity.

1:19:31There's nothing there. It's a fugazi. Like, look at the stock market. It's positive sum. It's$70 trillion in the stock market. And the pie is growing. There's like a couple of hundred million dollars in all the prediction markets combined. Well, they just started. So why does he think - It's irrelevant. So Interactive Brokers launched, obviously, every other brokerage launched prediction markets. So I understand like being promotional about it. I wonder, and I wish I got to ask him, but it's TV. So I had like 20 seconds. I wonder why he thinks that binary bets are going to become a bigger market than the securities markets, which includes bonds.

1:20:12Why would that happen? First of all, the CEO of Koshy said the same thing. But the point is, is that. Of course. Of course he did. If you're the CEO of a company, your job is not. And I don't know. I don't know this guy that you said you were going to fight or whatever. I don't know any of these people. No fight. He's a legend. He's a legend. He owns 90 % of the equity of interactive brokers. I'm sure he loves his kids. My point is, is that that's not the point. The CEO of a company, their job is to make money for shareholders, right? So if going on TV and telling the whole world that this penny stock market is going to be bigger than the entire stock market, that's what his job is.

1:20:50Like, even if it's like the dumbest thing in the world, he's helping his shareholders as he should. You're 100 % right. Guess right. What's a better business, commission-free trading or taking a rake in the prediction markets? way better. I think it's interesting that Robin Hood is all in prediction markets. Vlad said it too. Vlad's super horny. Vlad's never been hornier. He told us here on the show. And then Schwab's like, nah, we're not doing that. It's a fade all day. Yeah. It's like the latest gimmick that people that can't stay focused and they're chasing the next shiny thing. I told that to Vlad.

1:21:23Those are the types of people that are chasing this. I said, Vlad, I think everybody's drunk on this stuff. I don't think it's going away. I think it's going to grow, but it is the way that we're talking about it is so insane. In my opinion, I think it'll be very, very niche. I think it'd be very niche and it'll be a lot of fun to watch like people bet on things and watch the election stuff, especially. I can't imagine it becoming like a gigantic market. I just, maybe I'm an idiot and will laugh at me in three years. I think I'm more on your side. For the record, I hope that you and I are idiots and we're dead wrong because that would be cool.

1:21:56but these are glorified penny stocks with no liquidity. And if you are gambling on these things instead of actually owning assets, I think, in my humble opinion, that you're a f***ing moron, right? And anybody who's telling you to bet instead of invest in assets. Don't hold back. Say what you really feel. All right. I hope I'm wrong. Ladies and gentlemen, thank you for joining us on this edition of the Compound and Friends. I would like to give a huge thanks to our friend, JC Peretz. JC's research can be found at trendlabs.com. JC personally can be followed on x.com. It's x.com slash JC underscore Peretz X.

1:22:40We have to work on that. We got, it's no good. We got to fix that. All right. And you're on LinkedIn. JC Peretz, CMT as in Chartered Market Technician. Anywhere else people should be going? OnlyFans, right? OnlyFans. Yeah. And follow me on thepolymarket.com. I got my profile in there. That's right. And if you're anywhere within the vicinity of the National Championship game on Monday, you will probably be able to hear JC cheering for the U. Dude, there's other loud, obnoxious Cubans there, by the way. I know. I'm not the only one. All right. Guys, thank you so much for listening. Thanks for watching.

1:23:14We'll see you soon. All right. All right. That was, dude, that was amazing. Thank you. I will be there, and I do want to hear from you. The Bob Fulbright.