TML Report January 7th, 2026 – The Market’s Leadership Continued to Broaden

Market Overview

The major indexes have performed rather well so far in 2026, despite the NASDAQ continuing to struggle to get through key resistance.

More importantly, the health and breadth of leading growth stocks have continued to improve. Remember, healthy rotation among the market’s leading growth stocks is what ultimately sustains an uptrend or bull market, and currently things are looking good in that regard.

Now it’s our job to home in on the best stocks in the best groups, and have the patience and discipline to wait to “Buy right.”

I like to say that “buying right” is your best defense. So do your homework, be selective with your entry areas, and keep your stops tight and logical. All that matters is risk management, and the money will follow.

Indexes

QQQ

The NASDAQ continues to struggle to push through key resistance, despite continued improvement in market leadership. The way leading growth stocks are shaping up would lead me to believe the tech-heavy index will ultimately resolve higher and confirming the strength in the other three.

SPY

The S&P 500 was unable to follow through on yesterday's close at new all-time highs.

IWM

The Russell 2000 continues to consolidate constructively, just slightly below its prior all-time high, where it looks like it's setting up to go higher.

DIA

The 30 stocks of the Dow Jones Industrials have ultimately led the market higher over the last few days.

Focus List

GOOGL

GOOGL looks like it's setting up to break out of its most recent base to new all-time highs.

NVDA

NVDA has ultimately moved sideways since August 2025 and finally looks like it could be setting up to go. Needless to say, that would be extremely helpful to the NASDAQ.

TSEM

TSEM has been exhibiting massive relative strength and the five weeks tight would lead me to believe higher prices are coming.

VIAV

VIAV has formed a healthy and constructive-looking base just slightly above its $18.14 prior all-time high, which can be used as a floor to buy on weakness in anticipation of a breakout through its declining tops line, which would provide an opportunity to buy on strength.

LITE

LITE has been a massive leader so far that looks like it still wants higher. However, it is very volatile, so buying on weakness is advised.

VICR

VICR appears to be forming a constructive bull flag only slightly below its all-time high from 2021. Watching for a green line breakout.

LLY

Constructive weakness from here would offer the ideal way to sneak into LLY, a powerful leading pharmaceutical stock. There's nothing wrong with buying a breakout from here. Just ensure you have sized your position properly and have a tight logical sell stop.

GH

GH is starting to move up and out of its tight sideways consolidation, and with a bit more time, looks like it could head much higher.

be

I would like to enter versus the 50-day moving average here and then add as the right side continues.

AS

AS looks ready to break out of its cup-and-handle base-on-base, and then hopefully push through prior all-time highs into green-line-breakout land, which has the potential to lead to a powerful move.