THIS WEEK’S MARKET-MOVING EVENTS (all days local)
The week begins with China’s loan prime rate decision for December, anticipated to remain unchanged at 3.10% for the 1-year lending rate and 3.60% for the 5-year. Germany’s producer price index is also due on Monday, with forecasts of a significant 1.0% annual increase, up from 0.1% in November. Tuesday brings Canada’s consumer price index, expected to show a 0.4% monthly decline due to a GST sales tax holiday, while annual CPI growth is forecasted to ease to 1.8%, reflecting slower food price inflation despite rising energy costs.
Midweek, the U.S. leading index for December is projected to decline by 0.1%, resuming its downward trend after a brief November uptick. Japan’s merchandise trade balance, due Thursday, is expected to narrow its deficit to ¥50 billion, with export values rising for the third consecutive month and import values increasing for the ninth. U.S. jobless claims are anticipated to remain steady at 218,000, though holiday season volatility could affect the numbers.
Friday features key economic updates from Japan, including consumer price index data and the Bank of Japan’s policy announcement. Inflation is expected to rise, with core CPI seen at 2.9% annually, driven by utility subsidies ending and persistent high food prices. The Bank of Japan is likely to raise its policy rate by 25 basis points to 0.5%. Meanwhile, U.S. existing home sales for December are forecast to hold steady at an annual rate of 4.16 million units, despite rising mortgage rates.
Econoday
Reuters) – A look at the day ahead in Asian markets.
Signs of life being breathed back into China’s economy and a strong rally on Wall Street on Friday bode well for Asian markets on Monday, although nervousness around President-elect Donald Trump’s inauguration could temper the optimism.
Reuters) – A look at the day ahead in Asian markets.
Signs of life being breathed back into China’s economy and a strong rally on Wall Street on Friday bode well for Asian markets on Monday, although nervousness around President-elect Donald Trump’s inauguration could temper the optimism.
What a relief!
Trump’s inauguration to be moved indoors
President-elect Donald Trump’s inauguration will be moved indoors, he announced Friday, due to dangerously cold temperatures projected in the nation’s capital.
“I have ordered the Inauguration Address, in addition to prayers and other speeches, to be delivered in the United States Capitol Rotunda, as was used by Ronald Reagan in 1985, also because of very cold weather,” Trump posted on Truth Social.
“We will open Capital One Arena on Monday for LIVE viewing of this Historic event, and to host the Presidential Parade. I will join the crowd at Capital One, after my Swearing In,” Trump added.
https://edition.cnn.com/2025/01/17/politics/inauguration-moving-indoors-cold-weather/index.html
5. Trading Tip: When Trading Against a Trend Don’t Overstay Your Welcome
This is an important tip because many traders treat both sides of the market the same way.
Have you ever had a winning trade and held out for the last pip only to see your target miss by a fraction, the market reverse and give back everything you made, sometimes more?
It has happened to me and I am sure it has happened to you as well.
There is nothing more frustrating than having a winner and then giving it all back.
Have you ever asked the question why?
Many traders like to fade moves and trade against a trend. They love to try and pick bottoms or tops.
This is often referred to as contra-trading.
When trading contra, you need to be faster to take profits than when trading with a trend.
While there is no set rule, more times than not a contra move does not reach a target level for the trade and is quicker to reverse once the buying (or selling) runs out of steam than a move with the prevailing trend.
This trading tip suggests not to hold out for the last pip when contra-trading and why I say don’t overstay your welcome when trading that side of the market.
To sum up, as a general rule, be quicker to take your profit when trading against a trend than when trading with it.
Contact jay@localhost with any questions or comments
Only thing that bothers me with BTC and its advances is time-space correlation right now.
This is a fifth day in a row of pushing Up – so might be the time for some consolidation.
Do not try to sell it – it can just continue Up with some sideways corrections.
Personally I wouldn’t touch it till Tuesday – Monday is Trump Inauguration day….so be very careful.
Newsquawk Week Ahead – 20-24th January
Highlights include BoJ, PBoC, PMI data, UK jobs, Inflation data from Canada, Japan and
Countries around the world are bracing for an economic bruising on Monday. And few have more at stake than Canada.
Bracing for impact: 5 things to watch with Trump’s upcoming tariffs
compensation of the different kind
Goldman CEO gets big pay boost, plus $80 million bonus for another five years at helm
I want to see every legal entity/company investing some of their profits into government treasuries, which are just a way to loan money to the government at a cost, a higher yield means the government is paying more for every dollar loaned to them. Treasuries are one of the risk less ways for companies to generate to additional source of income for the balance sheet. If they don’t want to keep that yield then they can distribute it to their shareholders which translates into more people buying that stock because it gives them a higher dividend… which is a win-win-win for the company, government and investor.
Will the dividends be higher for stock dividends or higher for treasury yields? It’s higher from companies which do invest into treasuries also.
Nowadays large companies/HNI’s all over the world are gonna be looking to buy into treasuries or into listed companies which pay dividends over stocks which generate wealth, because in which company will they reinvest that wealth? They would reinvest it in treasuries or companies paying dividends… The drivers for the global stock market trends are not only in generating wealth but preserving wealth and getting it repaid to the investor from the company by way of dividends, and the investment is benefiting from capital growth over a period of time.
Nowadays the investors who buy stocks to generate wealth end up getting trapped into buying at unsustainable valuations, so it’s better to choose from a bucket of stocks which pay dividends comparable to treasuries or simply exclude stocks and focus on treasuries. Hold the cash until opportunities in dividend paying stocks come about then start buying into them. Equity valuations are still far too high (for model traders like me) and need to correct much more and to a very large extent, however a very positive trend I also observe is that companies which have done splits, bonuses etc have already corrected and considered close but still too far from my model prints but ripe for investment nevertheless, because the model points and also the macroeconomic variables are working in the favor of those specific types of companies, and much more so if they are paying dividends comparable to, if not higher than treasury yields with a lot of room for them to make future growth. The yields can be increased if they do invest in treasuries.
Me thinks fundamentally that we can now ask the government for a cut in tax rates across the board… but….
2 days and 5 hours to donald’s ascension
last 10-yr bond trade offered 4.623%
–
Day 1 is likely to see exec orders around the issue of the border and illegal migrants
Week 1 is likely going to be a massive stack of executive orders donald made during his campaign
The Qtn is … will donald sign them all. It is his choosing and prerogative after all.
The main point in the case of salaried people is that treasuries provide another source of income for them.
Many countries in the world have the one job allowed only restrictions, and restrictions on what their employees can do after work mainly that they cannot take up a second job or freelance a job on the side or have a legal entity in their name as such matters are seen as the employee having a conflict of interest, having a legal entity conducting business in the same or even different industry serves as grounds for the employee facing immediate termination, no questions asked. Many countries also do not have effective welfare programs…
So what many salaried people in those countries do is to look for other streams of income such as fixed income securities, buying rental properties etc.
Their investing in fixed income government securities is the harmless way.
Treasury prices can also plateau for many years but then there is frequent cash turnover and reinvestment which when done long enough doubles their net worth.
Some people think rental property is the way but it is not, oh! the rental property will keep on growing in value. However, that is relevant if they plan to rent then sell the property in 10 years and not hold it for 50 years because at that time then who will be willing to pay market value with the hope saying oh! rental rates and property prices will keep on growing in the future… rental and property prices tend to plateau and stay flat for many years at a stretch. Now where is the appreciation in that?. The whole building gets older over time, and needs maintenance which costs $$$$$, The costs of building materials and a team of workers are justified only if the property is purchased for the owner to live in the property with his/her family.
Treasury yields nowadays are higher than property yields and will remain so in future times to come.
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