Weekly Market Recap: What Last Week Told Us — and How I’m Positioning for This Week

19.01.2026

Market Summary: What Happened Last Week?

Last week was less about big crashes or euphoric rallies, and more about rotation and positioning.

In simple terms:

Money didn’t leave the market — it shifted.

📊 Key Themes from the Past Week

1️⃣ Stocks Continued Higher, but Leadership Changed

Global equity markets stayed resilient, with several indices hovering near recent highs. However, leadership rotated:

Mega-cap growth and tech paused
Value, dividend, industrial, and energy names quietly gained traction
Small-cap and cyclical stocks showed relative strength

This isn’t a risk-off market. It’s a “selective risk-on” environment.

2️⃣ Interest Rates & Inflation Expectations Stabilised

Bond yields stopped rising aggressively, and markets appear more comfortable with the idea that:

Rates may stay high for longer
But additional aggressive hikes are unlikely unless inflation re-accelerates

This supports equities, but especially stocks with real earnings and cash flow, rather than speculative growth.

3️⃣ Energy & Commodities Woke Up

Oil prices moved higher last week on geopolitical concerns and supply-side narratives.

Energy stocks responded faster than the broader market
Commodity-linked assets attracted short-term traders

Energy strength often appears late-cycle or during uncertainty — it can persist for weeks, not days.

4️⃣ Gold Remained Quiet but Relevant

Gold didn’t explode higher, but it also didn’t break down.

Gold is behaving like a portfolio hedge, not a momentum trade — useful if volatility spikes.

🧠 What Last Week Means for This Week

Based on last week’s price action, here’s how I’m thinking about the coming week:

✅ Market Bias: Mildly Bullish, Selective

I’m not expecting a straight-line rally
I am expecting pullbacks to be bought, especially in strong sectors

⚠️ Volatility Risk Still Exists

Upcoming economic data (inflation, jobs, Fed commentary) can quickly change sentiment.

That means:

Choppy intraday moves
Better opportunities for swing trades, not aggressive day trades