December 12, 2025

Markets:

Futures tied to Dow Jones Industrial Average were higher on Friday as investors continued to exit technology stocks and move into value areas of the market.

Investors on Thursday poured into cyclical stocks that are considered more sensitive to the economy, while taking profits in growth-oriented names tied to the artificial intelligence trade. The move comes after the Federal Reserve on Wednesday cut interest rates for the third time this year.

Philadelphia Federal Reserve President Anna Paulson said Friday she views unemployment as a bigger economic threat than inflation, suggesting more room for cutting interest rates.

Portfolio:

Loving the AI and tech headlines this morning—especially the idea that money is “rotating out of tech.” Truly laughable. Imagine believing the tech revolution is ending because of Oracle.

Let’s get one thing straight. Use CIEN and ORCL as your case study: buy the AI picks-and-shovels (CIEN), not the companies spending aggressively trying to reinvent themselves (ORCL). Oracle is a great company, but it’s a software giant trying to break into an asset-heavy AI infrastructure world—a space they’re not built for and don’t have the cash-flow structure to dominate. That’s the real issue.

Meanwhile, AVGO put up strong earnings. The fact they skipped a buyback again should be flashing a very obvious signal: they’re lining up to buy someone. Bookmark this premarket.

We highlight this because if you simply followed the daily news cycle, you’d never be able to invest with a real plan. Tune out the noise. Follow the trend. Follow the money.

The Santa Rally usually kicks in during weeks 3–4 of December, and nothing has changed—we’re still aligned for the runway we want heading into 2026. For us, it’s all about technicals and momentum. Better to get off the bus one stop late than three stops early.

No changes to today’s holdings. We will likely be adding today, so stay ready. After a powerful week, we enter the session holding setups in TSLL and ONDS. Be alert today.