Situational Awareness – Morning of January 18th, 2025

Market Overview:

• []Asia:
  • []China has been strong this morning, continuing its base breakout.
    []Japan: Up for six consecutive days, showing steady upward momentum.
    []South Korea (Kospi): Range-bound since January 8th.
    
  []Europe:
  • []EU50: Up approximately 8-9% YTD.
    []Germany: Up nearly 8% YTD, with eight consecutive positive days.
    []France: Continues to show strength this year.
    
  []Bitcoin and Ethereum:
  • []Bitcoin: Trading in a tight range for the last 5-6 days, consolidating.
    
  • Ethereum: Also consolidating, showing potential for a breakout.
    

Key Indicators and Sectors:

• []VIX: At 15.07, remaining low.
  []Gold: Showing strong momentum over the last 30+ days.
  []Copper: Taking a breather, currently at $4.30.
  []RSP (Equal-Weighted S&P 500): Stable for three days, continuing its strength since January 13th.
  []QQE (Equal-Weighted Nasdaq): Fairly stable for the past two days, holding gains from January 13th.
  []Russell 2000: Seven consecutive days of gains, showing resilience.
  []FANG Stocks: Breaking out of a rectangular box pattern, indicating potential for special moves.
  []XLE (Energy ETF): Strong since December 20th, now facing three down days.
  []XLV (Healthcare ETF): Trending upward since January 17th; could be a sector to watch in the coming days.
  []XLU (Utilities ETF): Took a breather after a strong week. Weekly momentum remains upward.
  []XLF (Financials ETF): Flat this week after a strong previous week.
  []XLI (Industrials ETF): Continues upward momentum since January 13th.
  []Semiconductors: Eight consecutive positive days, but approaching resistance levels where previous reversals occurred.
  []DAPP (Digital Transformation ETF): Hovering near its baseline with false breakouts so far; a breakout would be noteworthy.
  

Plan of Action:

• []Focus on potential range expansions in individual tickers that show strength.
  []Consider two reversal bullish plays during the latter part of the trading day if setups present themselves.
  
• Overall, the market looks stable with no significant red flags at the moment.