MarketSurge powers the charts in this video.
It is no news that small caps tend to outperform in early January. It has happened again this year. Russell 2k (IWM) tested its 50-day moving average on January 2nd, and then it went straight up, making a new all-time high. Also, not surprising – the big lift came from sectors that lagged last year – energy, financials, and beaten down groups like nuclear, robotics, crypto, space, rare earth metals, etc. This basically happens in the first few weeks of almost every year.
The large-cap indexes, QQQ and SPY, are lagging behind small caps but are also near or at new all-time highs.
AMZN is pushing higher in anticipation of the Supreme Court decision on tariffs. SHOP might also benefit alongside other retailers. After a brief consolidation, GOOGL broke out to new all-time highs. TSLA tested its 20-week moving average, where it found support. NVDA pulled back to its 20-day moving average, where buyers stepped in. Both are lagging the market indexes but are likely to set up at some point if the market remains strong.
Memory chip stocks started the new year just like they finished the previous one – leading the market. SNDK is up 800% since last August. MU is only up 200% for the same period.
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