It was a good week for the market, as all the players were finally back and raring to go. The action is largely dictated by Washington, D.C., and the White House. 

Energy (XLE) continues to get a bid from the capture of Maduro. Big Utilities (XLU) slumped, as the administration and business continue to focus on small independent nuclear power players. Materials (XLB) are rocking on the spike in copper.

Consumer Discretionary enjoyed a huge session on Friday after President Trump continued his efforts to curb housing affordability. 

Sector Performance

Consumer Discretionary (XLY) names rallied in front of Friday’s session on the belief that the Supreme Court of the United States (SCOTUS) would strike down the Trump International Emergency Economic Powers Act (IEEPA) tariffs. It was the top sector of the week.

Although the SCOTUS decision wasn’t made discriminatory, it enjoyed a solid session on Friday, along with Materials and Utilities.

Market Advancers

Sandisk (SNDK) continued its remarkable rally.  Semiconductors were joined by homebuyers on Friday.

Homebuilders surged as mortgage rates declined, and the administration has proposed a range of ideas to bring the American Dream back to Americans, even forcing homebuilders to increase the supply.

Small-Caps are making a convincing move, and there’s room for increased positioning.

Today’s Session

Major indices are opening lower, as investors await the start of earnings this week with banks.

Financials (XLF) are moving lower this morning following Trumps’ call for a cap on credit card interest rates.

Over the weekend, we saw news that federal prosecutors were opening an investigation into Fed Chair Jerome Powell’s over his Congressional testimony on the central banks’s $2.5 billion renovation of its headquarters.

Comments

Excellent session Saturday morning... thank you, Charles. Bullish! Charles Ruhland on 1/12/2026 9:20:03 AM

Consumer Discretionary enjoyed a huge session on Friday after President Trump continued his efforts to curb housing UNaffordability... and ...Semiconductors were joined by homeBUILDERS on Friday. T in Tx Tim in Texas on 1/12/2026 11:40:17 AM

The Fed is broken. It needs to be overhauled to reduce the head count and make forward looking estimates based upon economic current conditions...and only for economic reasons. I nominate Ed Yardeni as an advisor. Tom Hall, Phoenix on 1/12/2026 1:03:31 PM

The Raider's football stadium in Las Vegas cost $2.0B to build. So yes, a $2.5B renovation of the Fed building must be investigated. August Belmont on 1/12/2026 2:47:03 PM

Surely you would agree the J Powell is on the way out, as such, I'm curious why you're not recommending any buys for real estate. Would you agree "Trumps new guy" will push down the Fed rate, which will push down res interest rates. Bob Bob Hosac on 1/12/2026 6:17:26 PM

The Fed has failed its mandate. It's time for the Fed to R.I.P. Move over Rover let the Department of the Treasury take over. James Waters on 1/13/2026 1:35:21 PM

Yes william bogan on 1/16/2026 11:25:52 AM

Charles: I believe the lowering of Credit card interest for 1 year is clearly politically motivated to hedge against losing the Congress in the mid-term November election. Basically, I do not like it but I also do not like losing the the mid-term elections much more! Carl Kolenda on 1/23/2026 9:34:59 PM

Congress needs to work with the Fed to reign in the budget deficit PERIOD. The ballistic rise in gold portends an unwinding of the dollar as the world currency, an attack on both institutions and our main street. We can only pray they will wake up and and act to reestablish the dollar as credible. Dean James Foster MD on 1/26/2026 7:21:24 PM

On a cold morning if you should get to close to the fire then your clothes may melt. Main Street is the same. A little is good but more may lead to destruction. Wallstreet, when working properly, is a cushion that should allow us to stay a proper distance for safety. Our legislature, in painful times, works in much the same way. It should offer us balance in our economy and our lives. There are plenty of examples of both government and economies moving too close to that fire causing great damage. Clint on 1/27/2026 11:37:11 AM

To me, the fed is kind of a pain in that you know what. They are definitely not behold to the general public which makes them a questionable outfit in the first place. Frankly, I don’t know why we even need them. I read once or what you could buy in 1880 for a dollar would’ve cost $.97 in 1913 when the Fed came along. The last time I checked, what you could buy in 1913 cost about 35 bucks nowadays. I know there’s a lot of factors that contribute to that, but the fed doesn’t help it at all in my opinion so as that answer to your question if they pay attention the main street occasionally it would be improvement. Al Ermitage on 2/2/2026 2:39:45 PM

Yes, the Fed's mandate needs to be more responsive to Main Street. My business advises and sells main street and lower middle market businesses generally when the owner is ready to retire. Small businesses need access to affordable capital in order to adapt to changes, acquire other small businesses, invest in equipment, and other resources. Since COVID it has been very difficult for them to invest and compete with larger public companies. Some industries, like the restaurant industry, have been devastated. When interest expense is high, Main Street businesses stop investing and hiring. The business owners attempt to do it all themselves to try to save the business. Interest rates on SBA loans have been 9-13% in recent years, and this deters growth and investment. These rates also lower the price/value of the business because a buyer must account for the higher debt service. Michael Snider on 2/18/2026 11:33:21 AM

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