Market Sentiment and Trends - Early January trading highlights how quickly emotions can influence market movements, with a warning against confusing momentum with durability [1] - Momentum traders are currently focusing on data storage stocks due to increased demand from artificial intelligence, leading to significant price surges [3] Sector Performance - Oil stocks have recently experienced losses, particularly following political upheaval in Venezuela, illustrating the risks of emotional trading [2] - Bank stocks are benefiting from loosening regulations and a rebound in deal-making, with notable strength in Goldman Sachs, Capital One, and Citigroup [4] Investment Opportunities - Turnaround plays such as Nike and Starbucks are being highlighted, with insider buying at Nike indicating confidence in recovery [4] - "Mistaken identity stocks," particularly Amazon, are seen as offering the best risk-reward profile at the start of the year, despite recent underperformance [5]