Insider Tips - Weekly Stock Market Report - Week January 12, 2026
Insider Tips — January 12, 2026
This week’s Market Pulse reflects a strong and constructive start to the new year, with markets clearly operating in a green environment. While not every stock or sector is participating equally, the broader market structure remains bullish, volatility continues to compress, and multiple major indexes are either at or pressing into all-time highs. What stands out most right now is not just price movement, but how the market is moving — with leadership rotating, fear steadily draining from the system, and opportunities emerging for investors who remain disciplined rather than reactive. This is a market that continues to reward patience, process, and rule-based decision making over prediction or emotion.
Technical Analysis & Market Structure
From a technical standpoint, the most important takeaway is that we remain firmly in a four green-light market condition. Despite a brief shuffle lower toward the end of last year, price action has quickly reasserted itself, confirming that the primary trend remains intact.
Three of the four major indexes — the S&P 500, Dow Jones, and NYSE Composite — are sitting at or near all-time highs. That kind of broad participation matters. Historically, when the majority of indexes are trending higher, it creates a gravitational pull that often lifts weaker areas over time.
The Nasdaq (QQQ) remains the outlier, but not in a bearish way. Instead, it is forming a descending triangle — a compression pattern that often resolves with a breakout as pressure builds. This explains why many tech-heavy portfolios may feel underwhelming even while the overall market is strong. It’s not a breakdown — it’s a pause.
Meanwhile, the VIX has retreated back into the 13–15 range, which tells us something critical: panic is being systematically squeezed out of the market. Low volatility doesn’t signal danger by itself — it signals confidence. And confidence is what allows trends to persist.
Market Trends & Sector Rotation
One of the dominant themes right now is rotation, not collapse. Capital is flowing — just not everywhere at once.
Financials are beginning to show constructive behavior, with the financial sector index moving into a breakout zone. If we do see a more dovish Federal Reserve posture ahead, banks stand to benefit through increased lending activity, fee generation, and improved margins. Whether that plays out or not isn’t something I trade on emotionally — the charts will tell us first.
At the same time, sectors tied to infrastructure, storage, and real assets are showing strength. This rotation explains why many investors feel disconnected from market highs — if you’re concentrated in a narrow group of mega-cap tech names, you may not be participating in where capital is currently flowing.
Precious metals remain another important theme. Gold miners continue to trade within breakout ranges, reflecting strength that often accompanies currency debasement and long-term monetary uncertainty. Silver, meanwhile, is showing an explosive and irregular structure — full of gaps — which historically suggests the potential for a sharp and decisive move at some point. These are not short-term trades, but longer-term positioning themes that extend into 2026 and beyond.
Individual Stock Breakdown
On the stock level, the market is making a clear distinction between leaders, laggards, and consolidators.
Apple continues to underperform, with weakening relative strength and repeated selling pressure. While the company itself remains extraordinary, the stock is behaving differently. When I compare the current structure to earlier periods of topping behavior, it raises early warning flags — the kind investors often ignore until it’s too late.
NVIDIA remains constructive but quiet, consolidating near its 50-day moving average. This type of behavior is not bearish — it’s digestion after a powerful move. Boring is often bullish.
AMD shows a similar pattern, forming what I view as a “landing zone” — the kind of consolidation that often precedes another leg higher, provided the broader trend stays intact.
On the other hand, SMCI demonstrates how quickly downside risk can accelerate when structure breaks. When stocks go down fast, they rarely offer second chances. Caution is warranted.
MicroStrategy reinforces the danger of price anchoring. Levels that once felt impossible to break were broken quickly, reminding us why risk management must always come before conviction.
Bitcoin, despite its long-term promise, is currently working through technical damage. A death cross and weak year-end close suggest it needs time to stabilize and rebuild structure before any sustained upside resumes.
Broadcom remains in a sell zone, with persistent selling pressure that must clear before it becomes attractive again.
Finally, Microsoft highlights the limitations of income strategies in downtrending stocks. While covered calls help reduce basis and generate cash flow, they are not a cure-all. Stocks that remain under their 50-day moving average and approach a death cross often require difficult decisions. Income matters — but so does opportunity cost.
Key Takeaways
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The market remains bullish, but leadership is selective.
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Low volatility supports trends; it does not guarantee safety.
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Rotation explains frustration — not weakness.
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Covered calls work best in sideways to rising markets.
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Early technical warnings deserve respect.
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Structure, discipline, and cash flow outperform predictions.
Conclusion
This market continues to reward investors who stay aligned with the trend, manage risk proactively, and avoid emotional decision-making. It is not a market that demands aggression — it demands selectivity. Opportunities are present, but they require patience, discipline, and a willingness to let charts guide decisions rather than narratives.
Current Market Condition:
The market continues to operate firmly in a green environment, with the primary trend intact and multiple major indexes sitting at or near all-time highs. Despite brief year-end volatility, price action has quickly reasserted itself, confirming strength rather than weakness. Three of the four major indexes are leading higher, volatility has compressed with the VIX back in low territory, and fear is steadily being squeezed out of the system. While not every sector is participating equally, this rotation is typical of healthy bull markets. Overall, the structure supports higher prices and favors disciplined, rule-based positioning over defensive or reactive behavior.
Stock Tips This Week:
Stocks With Momentum Heading Into 2026 — In this video I break down the high-probability stock setups currently on my radar as we move into 2026. Using chart structure, relative strength, earnings momentum, and early breakout behavior, I walk through key themes shaping the market — including AI, energy, financials, and infrastructure. This isn’t about predictions or buy-and-hold ideas, but about disciplined, rules-based positioning, risk management, and how I use covered calls to generate income while momentum stocks consolidate.
Your Diversified Portfolio Is More Fragile Than You Think — In this video, I break down why traditional diversification often fails when markets come under pressure, and why owning multiple asset classes doesn’t automatically mean you’re protected. I introduce a more modern framework used by sophisticated investors to focus on income diversification, capital protection, and consistency — including the Four Wealth Buckets and how covered calls can transform stocks into reliable cash-flow assets. This isn’t about predicting the next crash, but about building a portfolio that actually supports your lifestyle through all market conditions.
