Focus: USMarket Close: Wed, 21 January 2026
US markets rebounded strongly on January 21, 2026 (yesterday), following a sharp sell-off the previous day. The major indices closed higher, driven primarily by relief after President Trump backed off threats of new tariffs on several European NATO allies. This came after he announced a "framework" deal regarding Greenland (an ongoing interest of his) following productive talks with NATO Secretary General Mark Rutte. He also ruled out using force for any Greenland-related matters and confirmed the planned February 1 tariffs would not go ahead. The move eased trade/geopolitical tensions concerns that had weighed on sentiment, with investors cheering the de-escalation in US-Europe relations tied to the Greenland/Arctic discussions. Bond yields eased somewhat, and small-caps especially benefited from the risk-on mood. Markets appear to have stabilized for now, though ongoing Trump policy signals (including from Davos) remain in focus. Swing Trading Ideas (1–4 Weeks) - TEVO MethodologyToday's TEVO swing trade shortlist highlights a single high-conviction Pending Medium-Term Reversal setup in the utilities sector, targeting a multi-week recovery in an oversold name. This long opportunity aligns with improving medium-term momentum indicators, offering a favorable risk-reward profile for patient investors. The setup's strong historical hit rate underscores its potential as a quality entry point amid current sector rotations.
TEVO trades pick oversold/overbought but improving setups with positive expected value, strong historical hit-rates, giving you only the highest-probability swing opportunities each week. Market MovementsCyclical sectors like energy and materials outperformed decisively today, with the Russell 2000 gaining ground on the S&P 500, while the Magnificent 7 displayed divergence—NVIDIA and Tesla advanced but Microsoft lagged. Volatility plunged as the VIX dropped sharply, and equal-weighted sector data confirmed broad strength in consumer discretionary and industrials. What this means: The rotation signals increasing confidence in economic recovery themes, potentially sustaining upside if pending reversal signals in laggards like the Russell 1000 and select mega-caps confirm mean-reversion plays. Market Snapshot
Quantmatix Success StoriesOur signals delivered strong results last week, with Medium-Term Reversals capturing gains up to 17.0% in names like QIAGEN, while Short-Term Reversals added double-digit profits in several shorts, affirming Quantmatix's edge in volatile conditions.
Disclaimer: These insights are generated using AI and are provided for informational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. The content may be incomplete or contain errors and should not be relied upon for investment decisions. Always consult a qualified financial adviser before making financial choices. |
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US Relief Rally: Tariff Tensions Ease, Cyclicals Surge
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Focus: US