Things are looking bullisher and bullisher...

As goes January... You are receiving this email because you signed up to receive emails from True Market Insiders, rebranding to Sector Edge. [Unsubscribe here]( Keep the emails you value from falling into your spam folder. [Whitelist True Market Insiders](. Forgot your login information? Click [here](. [Image] Weekly Market Update Today is January 6, 2022 Hello and Happy Friday! I hope you and your family had a peaceful New Year. I managed to come down with COVID on or about December 22. So I spent the “Santa Claus Rally (SCR)” on my sofa. Bill Spencer Editor-In-Chief True Market Insiders And I discovered something. Once you get used to the fever, aching joints, cough and sore throat… … COVID really sucks! So, live and learn. I don’t know if Santa Claus was under the weather, but his namesake rally was a bit of a disappointment. (Quick refresher - the SCR refers to a well-established tendency for the S&P 500 to gain on average +1.3%, over the last five trading days of December and the first two trading days in January.) This year those seven days translate to: December 23 thru January 4. The S&P did in fact gain +0.80% over that span - about 60% of its expected historical average return. So… Ho! Ho! Ho? I guess…? Here’s how all the major averages performed while Santa Claus was coming to town. A couple of observations… One, while the rally might have fallen below the historical expectation – we still got a rally. This is important because if the market fails to rally, it could mean that there’s more selling on the horizon, along with falling asset prices. True, the S&P gained just +0.80%, but when you consider that in December the average lost -5.89%, any rally is welcome. And notice that our two small-cap proxies – the Russell 2000 (RUT) and the S&P 600 (SML) both finished in the top two slots, handily outperforming the mega-cap tickers. This bodes well for the market going forward, because as you might know, small-caps tend to lead large-caps, especially at the start of a new bull market.   Below is a sponsored ad from our friends at Rogue Economics. Please note the results are from some of their best performing. Some opinions may differ from what you read in True Market Insiders. To opt out from receiving special offers [click here](. - Chris Rowe, Founder End-of-Year Deal Here - Act Now Dr. Nomi Prins is an economist and investor, investigative journalist, and former Goldman Sachs managing director. Find out why NOW may be the best time to act on her latest stock market predictions. [Click here.](   Also, there are two other well-established seasonal trends that kick in during the month of January. Both of them, like the Santa Claus Rally, are the brainchild of the remarkable Yale Hirsch, Founder of The Stock Trader’s Almanac. The first is the “First Five Days Early Warning System.” Here’s Barron’s… “The first five trading days of January could predict the market direction for the year. The last 47 up First Five Days were followed by full-year gains for an 83% accuracy ratio and a 14% average gain in all 47 years.” We’ll have to wait and see what happens this coming Monday, which is the fifth of January’s first five days. But so far things look good. Here’s how the market has performed from Friday’s close (12/30) thru mid-day today. So far so good… The second seasonal effect to watch for is called “The January Barometer.” In a nutshell, if January does well, the year should do well. If January stinks, well… buckle up for a bad 2023. According to the Almanac, the January Barometer has been accurate 83.3% of the time. Obviously all of these effects are historically accurate on average. Just because something has been observed to happen 83 times out of 100, that doesn’t mean that this year will be one of those 83. That said (and not to sound like a broken record) but we’ve entered the start of THE strongest quarter of the 16-quarter (4-year) Presidential election cycle. The reason we harp on that so much is that it’s a very strong tailwind for stocks. And as I type these words, the S&P is up +1.82% on the day. So far so good for January, a critical month for stocks. Finally, here’s something that is absolutely certain. Fully 89% of the stock market is controlled by giant hedge funds, pension funds and mutual funds. These are the people that move markets. When the big funds are pouring their capital into a stock, they can't help but run the stock higher, making it outperform its peers. By the time individual investors hear about a stock in the financial media, the story is already over. Institutional investors have already made their move. That dynamic (and those sobering facts) WILL NOT change in 2023. But so what? Check out [this video by Chris Rowe]( where he talks about tracking the moves institutions make to set up his own trades. Chris' method is so simple, and so lucrative, that it’s a wonder so few investors know about it. Do yourself a favor in 2023 -- [start putting this strategy to work for yourself, right away](. Thanks for reading, and have a great weekend. Bill Spencer Editor-in-Chief, True Market Insiders   [How to Play These 3 “Baby New Year” Sectors]( [3 Reasons to Think Long-Term, in 2023]( [Red Dragon Bull Market?](   [True Market Insiders' Portfolio Track Record] You can [change your preferences here]( DISCLAIMER ©2023 by True Market Insiders, LLC, Protected by copyright laws of the United States and international treaties. 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