U.S. stocks surged Tuesday as investors reacted to President Donald Trump’s immediate policy moves and the absence of expected tariff hikes.
Markets had been bracing for volatility as Trump kicked off his second term, but relief came when the president refrained from imposing the sweeping tariffs on Mexico, Canada and China that many had anticipated.
The Energy and Industrials sectors are front and center as Trump prioritizes trade and energy in his new agenda. U.S. stock futures rose sharply during the morning hours and the SPY is still up for the day despite pulling back from the highs.
The spotlight now shifts to the upcoming earnings season, with Netflix (NFLX) expected to report robust results after the bell. The company has been a consistent winner, and Wall Street will be watching closely for updates on subscriber growth and international expansion.
As always, volatility creates opportunities, and staying nimble will be key in this environment. Whether through short-term trades or strategic sector plays, the next few weeks could offer plenty of chances to profit from the market’s moves.
🚨Monday Picks (a Day Late)🚨
Since we were out Monday with the holiday, these picks are a day late.
Maybe the biggest and most intriguing thing is if Trump will actually start moving the token on the Bitcoin strategic fund — the next major, major catalyst for crypto.
As I mentioned above, we also have earnings heating up with a lot of financials reporting…
Remember, at 10 a.m. ET each Thursday, I’ll cover everything in more detail… But for now, here are my favorite stocks of the week:
✅ ServiceNow (NOW) — epic setup, IMO.
✅ Arista Networks (ANET) — beautiful breakout.
✅ Financial Select Sector ETF (XLF) — Financial sector is lighting it up.
✅ Delta (DAL) — Airlines are red-hot.
✅ GE Vernova (GEV) — Earnings Wednesday before the open!
❌ Apple (AAPL) — not looking good.
🔥Bitcoin ETFs like IBIT or FBTC — speculative if Trump will put in the strategic reserve right away.
A Stock to Watch: Sea Limited (SE)
Sea Limited (SE) is a stock to keep on your radar this week, as it historically tends to be bullish at the end of the first month of the year. This bullish seasonal trend makes it an interesting opportunity for the rest of January and slightly beyond.
Buying SE on Jan. 21 and holding for 18 days has delivered an average return of 7.8% over the past several years. While past performance isn’t a guarantee, it’s worth considering as we navigate the end of the first trading month of 2025.
Final Thoughts
With markets closed Monday for Martin Luther King Jr. Day, this first trading day of the week sets the tone for what could be a tumultuous period. Everyone will be eyeing trade policy developments and economic data for further clues on market direction.
As always, volatility creates opportunities, and staying nimble will be key. Whether through short-term trades or strategic sector plays, the next few weeks could offer plenty of chances to profit from the market’s moves.
Graham Lindman
Graham Lindman Trading
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