Week of January 27

DeepSeek, FOMC, Big tech earnings

Recap of last week

After entering into long SPX calls before CPI in mid January we remained bullish last week and it paid off handsomely.

I expected the market to extend its rally into 6100, and it did just that making new highs above 6120 SPX.

We continued to run four core swings, long SPX, TLT, XLF and YINN. We were perfectly positioning to benefit from the extension of the current uptrend. However, next week gets a bit dicey. The introduction of DeepSeek as well as FOMC and big tech earnings will shake things up a bit. As always volatility bring opportunity, so this week could be a major gift.

Next move for markets