The weakening dollar and strengthening oil are laying the groundwork for the stock market to really pop, said Tom Lee, co-founder of the boutique equity research firm Fundstrat Global Advisors.
"We're in a much better position to sustain new highs," Lee told CNBC's "Squawk Box" on Friday. In addition to the flipped script on the dollar and oil, "high-yield is [also] acting completely different," he said.
"In the last year, I'd say the mistake [investors] made was really ignoring the message from high-yield [bonds]," he said. "As a tactical argument, that would have put people in the right place at the right time."
"High yield started rallying in early February. The markets really bottomed two weeks later," he said.
The stock market and oil prices hit a 2016 bottom on Feb. 11. Since then, the has soared nearly 13 percent, while West Texas Intermediate crude, the American oil benchmark, has surged nearly 60 percent.
The dollar index against a basket of major currencies reached a 2016 top at the end of January, sinking more than 4 percent since then.
Against that backdrop, ahead of Friday trading, the S&P was less than 2 percent away from its record close of 2,130.82 last May. The index was poised to rise for the third week out of the last four.
In a note to investors released Friday, Lee wrote the S&P 500 in the current environment was in a better position to decisively set new highs than last year at this time. He was reiterating what he said in a March 31 "Squawk Box" appearance.
Lee has been a long-term stock market bull.
Investors should seek the stocks of companies "highly levered" to a weaker dollar, rising oil, and rallying junk bonds,he wrote in Friday's note.
"We [also] like the 'yield parity' approach of 'stocks are the new bonds' — buying companies whose dividend yield exceeds the bond yield," advised Lee, who formerly was chief equity strategist at JPMorgan before he branched out on his own.
Earlier this week, Jim Paulsen, chief investment strategist at Wells Capital Management, and Bespoke Investment Group co-founder Paul Hickey told "Squawk Box" in separate interviews they believe the S&P 500 is poised to make high highs soon.