Wednesday, January 7, 2026

The Morning Call--Trump's new world order introduces fatter tail risks

 

The Morning Call

 

1/7/26

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/metals-mania-continues-mag7-lags-2026

 

Note: the S&P managed a close slightly above its all-time high (good news). Under

our time and distance discipline, it needs to remain there through the close on Friday to confirm the breakout. If that is successful, the next visible resistance level is the upper boundary of a very short term uptrend (~7149).

            https://www.zerohedge.com/the-market-ear/everything-looks-bullish-right-range-high

 

            Tuesday in the technical stats.

            https://www.barchart.com/stocks/momentum

            https://www.barchart.com/stocks/sectors/rankings

            https://www.barchart.com/stocks/signals/new-recommendations

 

            Institutional demand returns to bitcoin.

            https://talkmarkets.com/content/etfs/bitcoin-etfs-see-biggest-inflow-since-october-as-institutional-demand-returns?post=548605

 

            Trump’s new world order introduces fatter tail risks.

            https://www.zerohedge.com/markets/trumps-new-world-order-introduces-new-fatter-tail-risks

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications rose 0.3% while purchase applications were down 6.2%.

 

Month to date retail chain store sales grew 7.1% versus +7.6% in the prior week.

 

The December services PMI was 52.5 versus consensus of 52.9; the December composite PMI was 52.7 versus 53.0.

 

The December ADP private payrolls report showed a gain of 41,000 jobs versus projections of 45,000.

 

                        International

 

November German retail sales fell 0.6% versus estimates of +0.4%; the December unemployment rate was 6.3%, in line.

 

The December Japanese services PMI was 51.6 versus expectations of 52.5; the December composite PMI was 51.1 versus 51.5.

 

The December EU construction PMI was 47.4 versus forecasts of 46.9; the December German construction PMI was 50.3 versus 47.0; the December UK construction PMI was 40.1, in line.

 

December EU CPI was up 0.2% versus predictions of +0.3%.

 

                        Other

 

                          Light vehicle sales grew in December.

                          https://www.calculatedriskblog.com/2026/01/light-vehicle-sales-increased-to-160.html

 

                          Heavy truck sales collapsed in Q4.

                          https://www.calculatedriskblog.com/2026/01/heavy-truck-sales-collapsed-in-q4-down.html

 

                          Asking rents declined YoY in December.

                          https://www.calculatedriskblog.com/2026/01/asking-rents-decline-year-over-year.html

 

                          Update on real wages and consumer spending.

                          https://bonddad.blogspot.com/2026/01/test.html

 

                          Update of Q4 nowcast.

                          https://www.capitalspectator.com/us-economy-expected-to-cool-in-q4-based-on-latest-nowcasts/

                       

                          Nowcasting 2026 GDP.

                          https://econbrowser.com/archives/2026/01/nowcasting-core-gdp

 

                          Auto loans deteriorate.

                          https://econbrowser.com/archives/2026/01/auto-loans-further-deteriorate

 

              Overnight News

 

                US attempts to board Russian tanker.

                https://www.zerohedge.com/commodities/russia-deploys-submarine-us-chases-dark-fleet-oil-tanker-across-atlantic

 

Marco Rubio has told lawmakers that President Trump plans to buy Greenland    rather than invade it, while Trump has asked aids to give him an updated plan for acquiring the territory.

  https://www.zerohedge.com/geopolitical/us-discusses-ways-acquire-greenland-military-use-table

 

China's Foreign Ministry said China's legitimate rights and interest in Venezuela must be protected, in regard to US President Trump's statement on Venezuela oil.

 

The US for the first time on Tuesday backed a broad coalition of Ukraine's allies in vowing to provide security guarantees that leaders said would include binding commitments to support the country if Russia attacks again.

 

China launched an anti-dumping probe into Japan’s chipmaking material dichlorosilane, deepening trade tensions after Beijing imposed export curbs — potentially affecting over 40% of its shipments to the country. Tokyo called the measures unacceptable. 

   

            Monetary Policy

 

              The latest FOMC minutes show growing division among members.

              https://www.advisorperspectives.com/commentaries/2026/01/06/fomc-minutes-show-divisions

 

            The Dollar

 

              A new hybrid monetary ecosystem.

              https://www.forbes.com/councils/forbestechcouncil/2026/01/02/three-reasons-re-dollarization-is-accelerating-a-new-hybrid-monetary-ecosystem/

 

              The end of dollar rule.

              https://www.financialsense.com/blog/21511/ken-rogoff-end-dollar-rule-debt-geopolitics-and-surveillance

 

            AI

 

              Using the shale boom to judge where we are in the AI bubble.

              https://www.zerohedge.com/ai/using-us-shale-boom-cycle-gauge-where-we-are-ai-bubble

 

            2026

 

              From Stephen McBride.

  https://www.riskhedge.com/outplacement/heres-what-i-see-coming-in-2026/rcm?utm_campaign=RH-144&utm_content=RH144OP855&utm_medium=ED&utm_source=rcm

 

              From Alhambra Investments.

              https://alhambrapartners.com/weekly-market-pulse-it-aint-what-you-dont-know/?src=news

 

              From Goldman’s new chief equity strategist.

              https://www.zerohedge.com/markets/goldman-current-combination-extreme-valuation-and-concentration-has-preceded-major-market

 

              From Goldman’s head of hedge fund trading.

              https://www.zerohedge.com/markets/resembles-jan-1999-goldmans-hedge-fund-honcho-lays-out-basic-framework-2026-market

 

            Geopolitics

 

              US exceptionalism versus Chinese uninvestability.

              https://research.gavekal.com/article/us-exceptionalism-versus-chinese-uninvestibility-part-i/

 

     Investing

 

            December dividends by the numbers.

            https://politicalcalculations.blogspot.com/2026/01/dividends-by-numbers-in-december-2025.html

 

            The latest from John Hussman.

            https://www.advisorperspectives.com/commentaries/2026/01/05/how-bubble-manipulates-time

 

            Stocks and bonds start year in equilibrium.

            https://www.zerohedge.com/markets/stocks-and-bonds-start-year-equilibrium

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

 

 

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