The main story today is that we are going to take a bet on the iron ore sector for a few reasons. There is speculation (in Barrons) that Trump will be more restrained on tariffs than expected. Tariffs are part of the reason the resources stocks are in a hole at the moment, concerns about Chinese growth are exacerbated by trade war concerns. If Trump doesn't come out with 60% tariffs on China as expected, we can expect headlines about a trade war being averted, which should provide some relief for the resources sector.

If the tariff situation is at least clarified (Trump's inauguration is on Monday), that might also put the Chinese in a position to provide some certainty on stimulus. Interestingly, the resources sector has started to move in the last few days. Let's get on board.

China has its new year coming up, and the Golden Week runs from January 28 to January 31. It would be a nice piece of timing if Trump offered an olive branch at the same time.

There are some stocks that might offer a bit more bang for the buck, being more geared to positive sentiment on China in the short term. Note that the iron ore sector (and all resources stocks) has quarterly production numbers coming up (a moment of risk) later this month.

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