The market headed into the three-day weekend limping along, perhaps seeking clarity more than a catalyst. There is a lot going on, and most of it centers on the White House. Meanwhile, I see spots of profit-taking amid rotation, which has shifted into a higher gear.

The Economic Engine

The signal from the Dow Jones Transportation Index (TRAN) is clear – the economy has several strong tailwinds.

This week has several important economic releases, including the latest personal consumption expenditures (PCE) inflation report.

Davos & the O.K. Corral

The European media is in a frenzy over President Trump’s visit to Davos, where he is expected to “lay down the law.”

It should be a showdown worthy of the scene at the O.K. Corral.  The administration wants Greenland for many reasons, including national security and Europe’s security.

Buckle up, it’s going to be a wild ride.

Today’s Session

To quote Yogi Berra: “Its déjà vu all over again.”  Headlines are swarming with the budding battle between Europe and the United States

The market is under pressure, and the doom and gloom crowd is strutting around like peacocks. Some are summoning the Bond Vigilantes. However, Scott Bessent is urgently cautious, saying we’ve seen this movie before.

“I am confident that the leaders will not escalate, and that this will work out in a manner that ends up in a very good place,” Bessent said Tuesday during a press conference at Davos.

We are also waiting on the Supreme Court tariff decision, possibly today.

Keep your head on a swivel for opportunity, not panic.