Markets Weekly Notes
Jan 12 – Jan 18 · 2026-W03
3 events this week
🧠 Feynman Takeaway
The SEC approved 23/5 trading, Q4 earnings kicked off strong, and the CLARITY Act draft emerged — a triple witching hour of market structure news.
SEC approves 23/5 Exchange Trading
In plain English
The SEC approved 24X National Exchange, NYSE Arca, and Nasdaq's proposals for nearly round-the-clock trading. US equity markets would soon operate 23 hours a day, 5 days a week — the biggest structural change since decimalization.
Analogy
Imagine your local grocery store suddenly staying open from 4 AM to 3 AM next day. You can buy milk at 2 AM. That's what just happened to US stocks — markets are now open whenever you want to trade.
Why it matters
This single decision reshapes everything: overnight liquidity, retail participation, volatility patterns, and the entire market-making infrastructure.
Q4 2025 Earnings Season Kicks Off
In plain English
Major banks reported Q4 earnings. CEO confidence hit a record high (Late Earnings Report Index at 46 — lowest ever, meaning CEOs reported earlier than usual, a bullish signal). S&P tracking for 10th consecutive quarter of YoY earnings growth.
Analogy
When CEOs rush to report good news early, it's like kids lining up to show their report card before being asked. The LERI of 46 was the lowest EVER — executives couldn't wait to share their results.
Why it matters
This earnings momentum would peak in Q2 2026 and then JPMorgan would warn it was running out. But in January, everything looked rosy.
CLARITY Act Draft Released
In plain English
The Senate Banking Committee released a 278-page draft of the CLARITY Act — the most comprehensive crypto regulation bill ever proposed in the US. It would ban the president from issuing crypto, regulate stablecoins, and create a new framework for digital asset markets.
Analogy
Imagine someone writing a 278-page rulebook for a new sport that hasn't been invented yet. That's the CLARITY Act — Congress trying to cage the crypto tiger before it eats the furniture.
Why it matters
The CLARITY Act would consume the next 6 months of congressional energy, passing the Banking Committee in May and heading to the Senate floor by June.