Market Selectivity Intensifies as 202 Stocks Receive Grade Changes

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The Seattle Seahawks won the Super Bowl on Sunday, securing their championship by defeating the New England Patriots. The Seahawks’ defense played a pivotal role, effectively neutralizing the Patriots’ offense until the fourth quarter, where it was too late for a comeback.

In stock market news, the S&P 500 rose 1.4% in January, while the Dow gained 1.7%. Notably, small-cap stocks outperformed large-cap stocks, with the Russell 2000 increasing by 5.3%. Historically, when the S&P 500 finishes January up—an occurrence that has happened 25 times in the last 40 years—the market sees gains over the subsequent 11 months approximately 80% of the time, averaging an 11% increase.

Market leadership is shifting, with increased investments in domestic small- and mid-cap stocks. A recent analysis of 202 major blue-chip stocks revealed that 23 stocks were upgraded to a Very Strong rating while 18 experienced downgrades. This changing landscape emphasizes the importance of a disciplined investment approach amid the market transition.

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