Market21 Jan 2025 12:12
captain’s log – market briefing
ahoy, crew! as we set sail into this trading week, we navigate waters stirred by the trump 2.0 administration’s swift issuance of 173 executive orders. these decrees chart a course through economic reforms, cost-cutting measures, and immigration policies. while the seas are calm for now, the tides of uncertainty ripple beneath, leaving markets near record highs but confined within a narrow trading range.
the week’s voyage appears uneventful, with a sp**** economic calendar delivering reports on manufacturing, labour, and sentiment. earnings ahead hail mostly from mid-sized companies—no leviathans to shift the current. the market’s course remains steady yet choppy, lacking winds strong enough to break from the sideways drift. for now, maintain a firm hand on risk management and keep an eye on the horizon for surprise squalls of volatility.
retrospective charting: last week’s expedition
the s&p 500 gained a hearty 2.9%, buoyed by favourable inflation reports and strong earnings from financial sector titans like jpmorgan and goldman sachs. treasury yields dipped as inflationary pressures eased, helping fuel optimism. cyclical stocks led the fleet, with financials and energy powering ahead, while value outperformed growth.
meanwhile, international winds blew fair—china’s economic data exceeded expectations, and a middle east ceasefire lent calm to geopolitical seas. mid- and small-cap ships showed strong form, their technical charts hinting at continued outperformance as we sail deeper into 2024.
forecast: the week ahead
hold steady, crew! we remain anchored in a range-bound market as investors process the new administration’s policies. key support and resistance levels guide us, while bitcoin, that tempestuous rogue, continues its volatile dance but holds firm at $100,000. the absence of major catalysts suggests this week’s journey will stay within known waters. keep your trading strategy sharp and ready, for the winds of volatility may shift at a moment’s notice.
stay alert, navigate wisely, and may the charts be ever in your favour!