DC Lite #512

"Seeing these two lines break down like this is about as bullish as it gets"

Author

Daily Chartbook
January 08, 2026

Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights.

1. Survey of Consumer Expectations. "More stress: % of consumers thinking they won't be able to make a minimum debt payment in the next 3 months rose sharply in December to 15.27% ... that is a new post-pandemic high."

2. U3 unemployment. "No-one is predicting a US recession in 2026 despite this simple indicator having a 100% track record of success. This time may well be different, but you've got to have a bloody good reason to ignore this. Are you feeling confident?"

3. AAII Asset Allocation. AAII allocation to stocks ticked down in December but remains near multi-year highs. Bond and cash allocations remain low.

4. NAAIM Exposure Index. Active managers increased exposure to US equities over the past week. The index has held above 90 for 6 consecutive weeks, a streak seen just 9 other times since 2006.

5. Risk-off ratios. "From where I’m sitting, this is still very much a risk-on market … Seeing these two lines break down like this is about as bullish as it gets."

ICYMI

DC Lite #511

"This is the key difference between the Dot Com and AI CAPEX booms"

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DC Lite #510

"Here is what $SPX did each year when it was up the first 5 days"

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DC Lite #509

"Typically, when stocks signifying an awakening of animal spirit behaviors begin leading the stock market, it’s often a signal of a new bull market"

www.dailychartbook.com/p/dc-lite-509

DC Lite #508

"Wall Street may be 'always bullish' but they also almost always underestimate the S&P 500"

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DC Lite #507

"While domestic breadth has been uneven, global breadth strength has been resilient"

www.dailychartbook.com/p/dc-lite-507

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