The important thing takeaway from my livestream with CJ final week stays in play proper now…
Play it protected and get defensive and within the month of February – which has traditionally been the second weakest market month of the yr.
Once I say “get defensive,” I imply protect capital, elevate money, and be able to reap the benefits of the dip-buying setups come March and past.
Working example…
Each single member of the Magnificent 7 is down on the yr.
Are these former darlings now turning into the “Lag 7“?
On the identical time, as buyers rotate out of tech names, shopper staples have turn into a major beneficiary.
The buyer staples sector is up +25.5% in 2026, making it the third-best sector within the S&P 500 behind supplies and power.
Greenback weak point is boosting shares of corporations with multinational presences, comparable to like Coca-Cola (KO), Procter & Gamble (PG), and Philip Morris (PM).
Earnings later this week from Walmart (WMT) may add to this development as properly.
However for right now, I wish to concentrate on two names that might profit proper now.
CROX Blastoff = Good for DECK & BIRK?
Final week, shares of Crocs (CROX) surged following the informal footwear firm’s fourth-quarter earnings report.
For the quarter, Crocs model gross sales edged up 1% to $768 million, whereas Crocs model’s direct-to-consumer (DTC) income grew 5% to $475 million.
Worldwide development led the best way, with gross sales climbing 14% to $332 million.
Shares spiked from $83 to above $100 on this information.
While you see a footwear firm shoot increased like this, it begs the query…
Will this monster upside transfer carry over into different area of interest shoemaker performs like Deckers Outside (DECK) or Birkenstock Holding (BIRK)?
Properly, a fast take a look at Money Code X gives us a robust clue…
YOUR ACTION PLAN
I discover it fairly attention-grabbing that whereas CROX was blasting increased, BIRK has quietly emerged with a inexperienced triangle indicator in our monitoring software program – which means that now could possibly be the right time to purchase. Might BIRK be one of the best inventory to expertise a strong upside transfer like we simply noticed with CROX? In line with our proprietary monitoring software program, that reply is sure.