Red on Greenland

This time of year is typically when markets have no choice but to (finally) face reality. The holidays are long gone. We just had a three day weekend and will not have a scheduled holiday again for about a month. We are basically a full year into Trump's second term. Winter has been potent but figures to just be getting started. The days may be getting slightly longer but not to such a degree as to move the needle, yet. 

And now we have a confluence of geopolitical risks and headlines suddenly jolting markets beyond a mere, knee-jerk buy-the-dip off a three day open on the gap down this morning. In Japan, the BoJ is finally facing the consequences of their reckless policies, with rates on the JGB spiking to multi-decade highs and showing no signs of slowing down. Meanwhile, here in the States the White House seems more and more like a bellicose administration itching to take Greenland once and for all. 

All of this is happening on rates on our 10-Year Note spike to the highest levels since last Labor Day, if not last August 2025. What makes this move even more concerning is that stocks seem unable to shrug off these headlines a developments. 

On the MAGS daily chart, updated below, the ETF for the "Magnificent 7" leading stocks in the world gapping hard below well-defined support dating back to last September. True, all of the Mag7 have earnings coming up in a few weeks. So, bulls will argue this is yet another bear trap before a reversal higher. However, that may be another sign of complacency in this market, where bulls no longer fret about any and all technical warnings signs, as they have become so accustomed to inevitable comeback. 

In addition, you will note gold, silver, and the metals and miners overall surging once again, likely reinforcing just how serious of a situation the bond market selloffs are in Japan and America.