Daily Commentary: December 12, 2025

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New All-time High Likely Today

Posted by Pete Stolcers on December 12
www.oneoption.com

A Fed rate cut, a liquidity injection and seasonal strength will push the market through the high.

PRE-OPEN MARKET COMMENTS FRIDAY – The market flirted with the all-time high last night and it backed off when AVGO reversed its gains. Overseas markets were up marginally so there is a slight tailwind. The Fed cut interest rates and they are injecting $40B of liquidity into the banking system the rest of the year. Seasonal strength is going to push us through the all-time high today and Asset Managers are going to market portfolios up into year end.

I am continuing to sell OTM naked puts on stocks I am willing to take assignment on. I am selling them at least 10% below the current price and I want to make an 8% return in a few weeks. If we get a nice market drop I will get more aggressive and sell OTM bullish put spreads.

If we get a dip this morning, I will wait for support and I will buy. I believe we could make a new all-time high heading into the weekend. There aren’t many sellers and even a small bid can drive prices higher.

It’s hard to believe that Christmas is less than two weeks away. The volume will dry up. Try to sell some premium to generate income. Day trading will be challenging.

Support is the low from Thursday and resistance is the overnight high ($691.24).

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