Hello TheoTrader,
Today is the last day of the Santa Claus Rally. But practically speaking, holiday trading is officially over.
We’re back to full trading regular hours. After some needed rest, I am locked and loaded for 2026.
It’s a good thing too, because this year started with a geopolitical bang.
Maduro was yanked out of Venezuela and shipped to Brooklyn.
But did the market know this would happen beforehand?
Maybe it did…just maybe it did…
It’s All About Growth
Another Example of the Market Knows Before You
The news broke Saturday morning. Maduro was arrested and extradited to the U.S. on a laundry list of charges.
Venezuela isn't exactly a financial powerhouse. The doom-and-gloom crowd has used it for years as Exhibit A for currency collapse.
But here's what matters more: a flood of new oil is about to hit the market.
The energy sector surged last week. Maybe Wall Street already knew U.S. refiners were about to get their hands on all that heavy Venezuelan crude.
More supply usually means lower prices. But operating costs in Venezuela? Far cheaper than other markets.
In oil, it's all about margins. The market's already sniffing it out.
Here's the catch. Energy tends to shine late in the cycle. If this momentum holds, it could signal trouble ahead for the broader market.
Basic materials led over the past month, thanks to mining stocks going vertical. But that rally looks tired.
For stocks to keep climbing, I need to see tech, communications, or consumer discretionary step up this week.
Otherwise? Time to play defense.
Stay tuned,
Gianni