Daily Newsletter 11/24/25
US stock index futures are trading higher this morning as the market begins the holiday-shortened week. S&P 500 futures are up modestly, Nasdaq 100 futures are leading gains with a stronger rise, and Dow Jones Industrial Average futures are also advancing. This positive momentum is driven by growing investor optimism around a potential Federal Reserve interest rate cut in December, following supportive comments from Federal Reserve officials last week. Despite recent losses in November, traders are hopeful for a rebound and are watching key economic data releases scheduled for later this week. Overall, investor sentiment is cautiously upbeat as markets attempt to build on last week’s gains ahead of Thanksgiving.
The question of the week, actually one that has persisted for a long time, is: “Is AI a bubble or not?” The debate continues as AI investments soar to unprecedented levels, fueling optimism and concerns of overvaluation. Some experts see the AI sector as a transformative boom with structural demand, while others warn of speculative excess reminiscent of past bubbles. The divide reflects uncertainty about how quickly AI can deliver sustainable profits versus the current hype and stretched valuations. Ultimately, this remains a key question shaping market sentiment and investment decisions in 2025.
Following Nvidia’s earnings release, the market reaction on Thursday was unusual and sharp, but expecting one company alone to prevent a broader market downturn is unrealistic. While Nvidia’s strong performance offered temporary relief, broader market forces ultimately drive overall direction. The AI sector remains split between those confident in its future and those wary of a bubble, with valuations stretched and some investor concerns. Unlike dot-com, each market bubble is unique, sharing traits like irrational behavior but differing in causes and timing. Macroeconomic models rarely predict sudden crashes accurately; instead, sound judgment is key in navigating complex market dynamics.
Looking ahead, the strategy focuses on medium-term bullishness in gold and silver, supported by risk aversion and central bank buying, while seeking short-term rebounds in technology, especially semiconductors. Recent option positions in tech have been taken at low premiums, making directional trades potentially profitable. This balanced approach combines strength in precious metals with opportunities in key sectors amid ongoing market complexity.
OUR TRADES
We share all our short-term trades in the Tactical Portfolio exclusively with paid subscribers, showing the exact entry time and price for every trade below. Subscribers receive timely buy and sell alerts via chat. Our approach is eclectic, blending macroeconomic insights with a quantitative methodology. We do not limit ourselves to specific markets or sectors, seeking to profit from any short or very short trade that fits our strategy. We use sophisticated option strategies to capitalize on short-term market movements, ensuring full transparency and prompt exit updates.