Weekly Outlook: Jan 12, 2026
The geopolitical shock is over; now comes the accountant’s reality check.
While the market spent last week repricing risk around the Venezuela intervention, the dust has settled into a tentative stabilization. But the calm is deceptive. We are walking into the “Eye of the Needle” for Q1 data: CPI inflation numbers drop this week, and the Q4 Earnings Season officially kicks off with the Big Banks.
The “Anti-Dollar” trade we’ve tracked for weeks is now colliding with corporate execution. The liquidity is there, but is the growth?
CI Markets for the week of Jan 12 signal a pivot from “Crisis Alpha” (Energy/Defense) to “Cyclical Beta” and “Inflation Insurance.”
The Earnings Litmus Test Forecast: Financials (XLF) Trend Up 🔼
The “Reconstruction” trade isn’t just about oil rigs; it’s about the capital required to build them. With JPMorgan ($JPM) and the major banks kicking off earnings this week, we expect the sector to surprise to the upside. Higher yields (the 10-year is holding above 4%) and renewed deal-making activity are tailwinds for the sector. CI Markets forecasts $XLF to move higher as it plays catch-up to the broader market.
The “Risk-On” Rotation Forecast: Russell 2000 (IWM) Moving Higher 🔼
If the “Santa Rally” was led by Tech and the “Venezuela Shock” was led by Energy, this week belongs to the domestic economy. Small Caps ($IWM) have lagged the headlines, but they are the primary beneficiary of the “No Landing” economic scenario. As liquidity rotates out of the crowded “Safety” trades, CI Markets see it finding a home in the undervalued, domestic-focused small caps.
The Inflation Insurance Forecast: Gold (GC=F) Bullish 🔼
We haven’t touched on Gold since late December, but it demands attention ahead of the CPI print. While Bitcoin grabbed the liquidity spotlight last week, Gold has quietly consolidated near its highs. If the CPI number comes in “sticky” (as wage data suggests it might), Gold remains the cleanest hedge. CI Markets forecast a resumption of the uptrend as the “Anti-Dollar” thesis gets a fresh data point to trade on.
Conclusion
The signal for the week of Jan 12 is Execution. The macro narratives (Venezuela, Fed pivots) are flashy, but earnings and inflation data are what actually clear the market. We are positioning for a “Good News is Good News” week where strong bank earnings and resilient small caps drive the next leg higher, while Gold remains our insurance policy against an inflation surprise.
The content presented in this note is for informational purposes only and should not be construed as investment, financial, or trading advice. This analysis is generated from the output of Complete Intelligence’s proprietary artificial intelligence platform and does not constitute a personal recommendation. You should not base any investment decision solely on this material. Please consult with a qualified financial professional before making any investment decisions. Complete Intelligence is not liable for any actions taken based on the information provided herein.