These Are the Stocks to Buy In 2026 (with JC Parets)

Summary of These Are the Stocks to Buy In 2026 (with JC Parets)

by The Compound

1h 23m•January 16, 2026
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Overview of These Are the Stocks to Buy In 2026 (with JC Parets)

This episode of The Compound features technical analyst JC Parets (TrendLabs, Everybody’s Wrong) discussing market structure, notable charts and trade ideas for 2026. The conversation emphasizes price-action-first investing (buy strength, follow breakouts), the macro backdrop (commodities, dollar, bonds), key sector rotations (small caps, international, energy, financials, semis), and behavioral themes (why “smart” people still blow up). JC walks through a long series of charts and gives practical, actionable guidance on how he’s positioning.

Key topics covered

  • Why price (technicals) matters: buy strength, don’t fight trends; use plans and stops.
  • Four groups to “fade” when they’re unanimous: sell‑side analysts, asset managers/hedge funds, mainstream journalists, and economists.
  • Commodities and precious metals: a major multi‑year cyclical bull for many commodities; gold, silver and energy have been strong.
  • Rotation outside the U.S.: international and emerging markets outperformed U.S. in 2025.
  • Small caps and sector breadth: multiple small‑cap segments and cyclicals making new highs—confirmation of a broad uptrend.
  • Specific sector calls: energy (producers & oil services), financials, semiconductors, and select tech/industrial names.
  • Skepticism about prediction markets / binary‑bet products as being illiquid and short‑term.

Main takeaways / Investment posture

  • Price trumps story: JC and hosts prefer buying momentum and breakouts rather than bottom‑fishing based on narratives.
  • Don’t confuse unanimity for correctness: when the crowd (and media/economists/analysts) all agree, that is often the time to take the opposite view.
  • Trend persistence: historically, bull markets (and commodity supercycles) can last many years; fighting an established trend is often costly.
  • Position sizing & stops: JC uses tight, often time‑based stops for short‑term setups—if the trade doesn’t act quickly, he gets out.
  • Expect a K‑shaped 2026: some sectors and names will be huge winners, others big losers, and many will chug along—stock selection matters.

Notable charts, patterns and evidence discussed

  • Broad market breadth: Industrials and Transports both making new all‑time highs—dow theory confirmation of cyclical strength.
  • NYSE Composite: closing at all‑time highs, which reflects more cyclical and international names (contrasts with NASDAQ concentration).
  • Consumer Discretionary: market‑cap and equal‑weight versions at new highs—discretionary strength is real even beyond mega caps.
  • Small caps (Russell 2000 and related indices): many small‑cap segments (industrial, materials, tech, energy, financials, biotech) making new highs—large base formation suggests room to run.
  • International and emerging markets: 2025 was a strong year (many developed and emerging indices up ~30%+).
  • Commodities & Precious Metals: silver +150%, gold +65% (2025), broad commodity strength—possible beginning/continuation of a multi‑year commodity cycle.
  • Energy: breakout in energy groups and oil services (Baker Hughes, Halliburton cited); JC sees energy as one of the largest opportunities into 2026.
  • Semiconductors: relative strength in semis; names like KLA and Lam Research discussed as strong price leaders.
  • MicroStrategy / Bitcoin ratio: JC pointed out the outperformance/peaking of MicroStrategy relative to BTC in late 2024 and that price relationships changed once more direct crypto products (ETFs) appeared. JC recently took a long in MicroStrategy with a short time stop.

Four “fade” groups (behavioral edge)

When those groups are unanimous, consider fading:

  1. Sell‑side analysts — career & conflict biases can produce consensus herding.
  2. Asset managers / hedge funds — crowded positioning and leverage are risky when everyone lines up one way.
  3. Journalists / mainstream media — they explain what already happened; crossover to mainstream ≈ late innings.
  4. Economists — tend to over‑rely on lagging/revised data and “what should be” rather than what prices are saying.

Stocks, sectors and tactical ideas called out

  • Financials: Morgan Stanley and Goldman cited as leaders; global financials (US, Europe, Japan) ripping—important if you believe the cyclical bull continues.
  • Semiconductors: KLA, Lam Research (LRCX), other equipment names — breakout leaders in the semi cycle.
  • Real estate services: CBRE highlighted as a setup (consolidation below resistance; asset‑light CRE play).
  • Energy / oil services: Baker Hughes, Halliburton, refiners and other services names—JC expects strong moves as crude strengthens.
  • Small caps & momentum: Russell 2000 and small‑cap momentum indexes showing broad internal strength—JC favors “give the ball to the little guy” trades.
  • Solar & renewable-related names: more volatile and mixed; JC cautioned solar names are messy and tricky to time.
  • Crypto/related: MicroStrategy, Coinbase—JC is trading these but emphasizes tight stops and rapid time‑based decisioning.

Risks and what would change the bullish outlook

Watch for catalysts that could puncture the current setup:

  • Dollar rally (US Dollar above ~100): would pressure international stocks, commodities, metals and earnings in USD terms.
  • Bonds “waking up”: a spike in bond volatility or a sustained move higher in yields could change the market regime.
  • Leaders failing (the Magnificent Seven/mega‑caps) – if leaders roll hard before breadth can carry the market, that’s a risk.
  • Macroe or geopolitical shocks that drive liquidity out of risk assets. JC’s practical checklist: if breadth deteriorates (more 52‑week lows), transports/industrials lose confirmation, and bond/dollar dynamics break, be ready to change posture.

Actionable recommendations (how to apply this episode)

  • Trade price, not story: favor breakouts and momentum; pad positions with clear, pre‑defined exit rules.
  • Fade clear unanimous narratives from the four groups listed above.
  • Consider exposure to:
    • Energy (services and refiners) as a 2026 theme,
    • Small caps / Russell 2000 (where breadth is strong),
    • Global equities (EM and developed ex‑US) after 2025’s relative strength,
    • Select semiconductors & equipment (leaders like KLA, LRCX).
  • Use short time stops on speculative bets (e.g., crypto/volatile names), and keep position sizes appropriate.
  • Avoid buying a “magazine cover” narrative as a long‑only reason—use price confirmation.

Notable quotes / soundbites

  • “You don't have to be smarter than everybody else. You just have to be slightly less stupid.” — JC on avoiding common investor mistakes.
  • “If you're constantly fighting trends, then you are the sucker.” — on buying into confirmed trends and breakouts.
  • Warren Buffett clip on LTCM: smart people can and do take needless risks; leverage and arrogance destroyed them.

Guest / resources

  • Guest: JC Parets — founder/chief technician of TrendLabs; author of Everybody’s Wrong (charts + trade ideas).
  • Follow: JC on X (formerly Twitter) and TrendLabs; JC’s presentations and landing page (ChartSummit/TrendLabs) were referenced for slide decks and deeper chart work.
  • Episode sponsor mention: Public investing (promo discussed in show).

This episode is a deep technical walkthrough—use it as a source of trade ideas and a reminder to prioritize price and breadth over narrative. If you want to implement ideas, convert JC’s setups into sized trades with a documented plan and stop.