Trading Insights 12/12/25

Mike Larson | Editor-in-Chief

Is Santa ready to fire up the S&P 500 Index (^SPX) sleigh? That would fit with the historical pattern this time of year – and the Federal Reserve’s rate decision gives us a fundamental catalyst, too.

Check out the MoneyShow Chart of the Day here, which comes courtesy of LPL Financial. In their words: “Historically, the index tends to hover around the flatline during the first half of December, with upward momentum building around the 11th trading day.”

Source: LPL Research

Guess where we are now? Yep…right at “Punch it Rudolph” time.

It doesn’t hurt that the last major potential obstacle to a stock market advance – a monetary policy disappointment – just got pushed aside. Policymakers didn’t vote unanimously in favor of a Fed cut at this week’s meeting. But they delivered a 25-basis point reduction, and that qualifies as “good enough” for the bulls.

Not every stock is participating in this rally (I’m STILL looking at you Oracle Corp. (ORCL)!) Key questions about the lackluster job market, lousy consumer sentiment, relatively sticky inflation, and the K-shaped economy will need answering in 2026.

But in the short term, the stage could be a set for a run into year end. So, keep your eyes out for Santa!

Recorded LIVE at the 2025 MoneyShow Masters Symposium in Sarasota, this podcst episode features Larry McDonald, bestselling author and founder of The Bear Traps Report. We sat down for a high-impact breakdown of the macro forces that could define 2026 – and what investors should DO in response!

Larry explains why falling rates, aggressive fiscal spending, and the energy demands of the AI boom are setting the stage for a major rotation into hard assets. He also pulls back the curtain on the risks building inside the $1.8T private credit market and how financial repression is steering banks deeper into Treasuries. 

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And if you want to sample what the conference has to offer — including over 60 expert presentations on stocks, trading, technology, and alternative investments — you can…with a FREE Exhibit Hall Pass! Click the button below for more details.

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FEATURED PICKS FROM MONEYSHOW EXPERTS
  • SPX: Follow Through After Breadth Thrust Looks Constructive for Traders
    👉️ TICKER: SPX

    Last week’s powerful breadth thrust found its equilibrium. The NYSE Advance-Decline Line held steady, finishing the week flat but maintaining its reclaimed uptrend. The stabilization after a surge could be a constructive sign: the troops have advanced, secured ground, and are holding it, suggests Buff Dormeier, chief technical analyst at Kingsview Partners.

  • Gold: After Post-Fed Boost, Keep These Key Levels in Mind

    👉️ TICKER: GLD

    While not a bullish gamechanger, the net impact of Wednesday’s Federal Reserve decision will be to support a year-end rally and the reason is clear: The Fed wasn’t as-hawkish-as-feared. On the charts, gold remains rangebound between support at $4,200 per ounce and resistance at $4,400, observes Tom Essaye, president of the Sevens Report.

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