A Deep Correction Is Probable In 2025

The stock market is priced for perfection...with way too many risks on the horizon

Quick note: We spent a lot of time on the technical side of things this weekend. We just feel that there are some very important levels to keep an eye on early in the New Year, so we have provided quite a few charts this weekend. However, we still touch on several issues that have little to do with technical analysis…ones that we believe are very important. So, we hope you enjoy the “mix” this weekend…even if it’s a bit different than usual. Thank you.

Table of Contents:

1) Once again, the “rotation” trade has faded…and the tech stocks are still the key to the stock market.

2) Let’s take a look at the charts of all seven of the Mag 7 stocks…(and set up some alerts).

3) Expensive markets need excess liquidity. Will liquidity remain plentiful in 2025?

4) The Treasury market is extremely important, but let’s look at the corporate bond market as well.

5) There are some key support/resistance levels in the major averages to keep an eye one going forward.

6) The US dollar is ripe for a pullback. Will that impact the commodities market?

7) The energy stocks are breaking out…and crude oil & nat gas stand at KEY resistance levels.

8) The bank/financial stock rally has faded badly. Can it rebound?

9) Years that end in “5” tend to be bullish…but that’s unlikely this time around.

10) Summary of our current stance….Priced for perfection.