28 Dec 2025

Your Blueprint: Build a Trading Strategy That’s Truly Yours

Welcome to the 88th edition! This release gives you the must-haves: how to build a trading strategy that works for you, the game-changing shift to 24-hour trading, the crucial ingredients of a modern trading plan, and the real-world power of AI-generated trade alerts.

Insider Edge: Latest Trading Buzz

Your Blueprint: Build a Trading Strategy That’s Truly Yours
🛠️ Step-by-step guidance for crafting a robust, personalized approach to the markets: Developing Your Own Trading Strategy 📈

24-Hour Stock Trading—Is It the Future of Investing?
🌙 Get the inside scoop on the rise of round-the-clock markets, their risks, and new opportunities: 24-Hour Stock Trading 🌍

How to Create a Winning Trading Plan—A Modern Approach
📝 Combine psychology, discipline, and clear rules for a plan that lasts—the new essentials for traders today: How to Create a Trading Plan ✔️

AI Alerts Go Under the Microscope—Are They Really Worth the Hype?
🤖 Dive into a detailed review of AI-generated trade signals and see if they can boost your strategy: Trade Ideas Review: AI Alerts Under the Microscope 🔍

Market Outlook: December 29, 2025–January 2, 2026

Overview

The year-end week spanning December 29, 2025, to January 2, 2026, features extremely thin liquidity with markets closed New Year's Day (Jan 1) and minimal trading on Dec 31/Jan 2. No major central bank meetings occur, but scattered data like China Industrial Profits and U.S. Chicago Fed Activity Index test positioning amid 2026 outlooks favoring U.S. growth via AI/tariffs despite frothy valuations and protectionism risks.

Key Themes and Drivers

1. Year-End Flows and Seasonality

Window dressing and rebalancing drive flows into quality/value amid S&P concentration risks (Magnificent 7 ~35% weight). January barometer signals 2026 bull continuation per historical patterns.

2. Limited Economic Data

China Industrial Profits YTD (Dec 27 spillover) and U.S. Chicago Fed National Activity Index (Dec 22 spillover into thin week) provide minor reads. No high-impact releases expected; focus shifts to 2026 forecasts.

3. 2026 Positioning

Analysts project U.S. outperformance (S&P +8-12%) via AI capex/fiscal stimulus, but warn of volatility from tariffs, inflation reacceleration (core PCE ~2.9%), and EM pressures.

4. Risks and Sentiment

Protectionism resurgence and AI "winner-takes-all" dynamics mask cyclical stability; low vol (VIX ~12) belies structural shifts.

Key Events Calendar

Date	Event/Data Release	Market Focus
Dec 29–30	Thin trading; potential China profits spillover	Year-end flows
Dec 31	New Year's Eve (Shortened sessions)	Positioning
Jan 1	New Year's Day (Markets Closed)	Holiday
Jan 2	Chicago Fed Activity Index (possible), rebalancing	Activity gauge

Market Sentiment and Risks

Equities: Santa rally extension likely; U.S. large caps lead, broadening to EM/value.
Bonds: Yields stable ~4.2%; fiscal/tariff inflation risks linger.
Currencies: USD resilient; Asian low-yielders outperform.
Commodities: Oil ~$55-60/bbl 2026; gold hedges geopolitics.

Bottom Line

Ultra-thin holiday liquidity amplifies flows over data in final 2025 sessions; 2026 optimism (U.S. growth/AI) tempers tariff/inflation risks. Favor quality/diversification amid positioning volatility.

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Final Key Takeaway

True trading success comes from the right habits and tech—master core skills, automate when you can, and always protect your downside. Let the right mix of skill and innovation shape your profits, now and in the future!