Hi Trader, The first full trading week of 2026 (January 5–9) gave us a meaningful look at how markets are resetting after the holidays — and how traders are beginning to re-engage now that volume and participation are returning. Early January weeks tend to be very telling. Expectations collide, capital starts to reposition, and the market begins to reveal which behaviors are likely to persist — and which were just year-end noise. Here are the key lessons the market taught us this week, along with how you can apply them moving forward.
Lessons From the Week — And How to Use Them 1. Returning participation changed the market’s tempo quickly. Compared to late December, price action this week became more deliberate and structured. Moves developed with clearer intent, and follow-through improved as traders returned and liquidity increased. How to apply it: Shift out of “holiday mode.” Tighten execution, respect stops, and assume price can move with more purpose now that participation is back. 2. Direction started to outweigh short-term noise. While the market still had moments of chop, there was noticeably less random drift. When price chose a direction, it tended to stick longer than it did during the final weeks of 2025. How to apply it: Spend more time defining directional bias early in the session. When direction is clear, trade with it instead of trying to fade every move. 3. Key price levels regained their influence. Support and resistance zones were respected more consistently as volume returned. When price reached important levels, reactions were quicker and cleaner. How to apply it: Recommit to mapping your key numbers before the open. These levels matter more now than they did during thin holiday trade. 4. The opening hour once again became a reliable roadmap. Across several sessions, the first hour provided strong clues about the rest of the day — whether the market would trend, consolidate, or reverse. How to apply it: Use the open for information, not impulse. Let early structure guide your expectations before committing size. 5. Midday trading offered real opportunity again. Unlike late December, the middle of the day didn’t automatically turn into dead money. Several sessions produced clean, tradable moves outside the opening window. How to apply it: Don’t write off midday trading. If structure holds and volume supports it, the middle of the session can offer excellent risk-reward. 6. Late-day adjustments reminded traders to stay flexible. There were sessions where early trends softened or reversed into the close as positioning shifted and traders adjusted exposure. How to apply it: Reassess bias in the early afternoon. Don’t assume the morning trend will automatically carry into the close. 7. Options pricing began to normalize after the holidays. Premium behavior became more responsive to price movement and less distorted by thin liquidity, making option structures more predictable. How to apply it: You can begin leaning into more standard option setups again — while still respecting risk as the year finds its footing. 8. Overtrading continued to be punished. Even with improved conditions, traders who forced trades outside of structure struggled. Opportunity increased, but discipline was still required. How to apply it: More opportunity doesn’t mean more trades. Selectivity remains one of the biggest edges early in the year. 9. Structure continued to beat headlines and narratives. There was no shortage of opinions about what 2026 “should” look like, but price continued to respect levels, timing, and structure over stories. How to apply it: Stay grounded in price behavior. Trade what the market is doing, not what others are predicting. 10. Preparation is already separating traders. Traders who entered the year with clear rules, routines, and expectations handled this week far better than those reacting day-to-day. How to apply it: January is about building rhythm. The habits you establish now tend to shape the rest of the year.
As we head into the next stretch of 2026, having a clear plan for the week ahead becomes even more important. That’s why I want to encourage you to register and join us for tomorrow’s Planning Session. Tom will be sharing how he’s viewing the market heading into the next phase of the year, key areas and timing windows he’s watching, and a new way he’s developing to target 20–25% gains, Tuesday through Friday. Register for Tomorrow’s Planning Session Make sure you’re registered so you can join us live. Looking forward to a strong week ahead. Talk soon,
The DTI Team | 
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