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 S&P 500 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.