Another 3 I Perch Observations #26

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Welcome to Little Bird Trading. My goal is to simplify your stock screening process so subscribers can navigate the flyways like this:

All Weather Reports cover the following time frames:

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2. “Traders” — Target holding timeframe of days to weeks.

3. “Investors” — Target holding timeframe of weeks to months.

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• “Tailwinds” — Long bias.

• “Headwinds” — Short bias.

• “Roost” — Patience.

• “Mark” — The level, above or below, to potentially express your bias.

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Not a recommendation or endorsement I Not investment advice

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From below the paywall line in The Blueprint I Perch Observations #25:

The Blueprint

Last week I wrote and shared the following chart:

Markets never move in a straight line, so it’ll be interesting to see whether the price action spends more time above 590 (dark blue) before a retest, or first retests the top of the gap (light blue) again at 682 (pink).

Another holiday-shortened week, and price followed the light blue line by pulling back on Monday and retesting, yet again, the October gap:

Only one week into January, and so far higher lows and higher highs continue to be the theme. I shared the Dow (DIA) and small caps (IWM) charts in I'm Not A Cat. I Like The Spot. I Perch Observations #23, and above is the latest version of the Equal Weight S&P (RSP) chart.

Looking across the pond at the Euro STOXX indices, everything is breaking out to new all-time highs. Some are hard to see, so I marked up the key spots (light blue):

STOXX Banks

STOXX Utilities

STOXX Insurance

STOXX Small Caps

Korean KOSPI 200

Bullish signals across the globe, with US price action also remaining bullish. Patience continues to be key as the market (SPY) keeps condensing the levels, building energy to eventually break one way or the other.

In I’m Not A Cat. I Like The Spot. I Perch Observations #23 I wrote:

The shorter-term price action continues to build upside momentum, and the longer time-frame uptrend remains intact.

The holidays are all but over, and market participants will be returning to the office to begin positioning for 2026. It’s also an election year (midterms). Until either the short- or long-term trend changes, there’s still plenty more to expect from this bull market.

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