Daily Commentary: October 06, 2025

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No Bad News

Posted by Pete Stolcers on October 06
www.oneoption.com

The government is shut down and the economic releases have stopped.

PRE-OPEN MARKET COMMENTS MONDAY – Any potential speedbump has been eliminated because of the government shut down. Weak economic releases are not a threat so the market keeps rallying based on the current momentum.

If the shutdown lingers for another week without any progress, the market will eventually send a warning sign to politicians. I doubt that this is going to last more than two weeks because both sides want to save face heading into mid-terms next year.

ISM Services contracted to 50 last week and that is right at contraction territory. The service sector accounts for 80% of our activity and this was an important number.

Japan is up sharply on election results. Sanae Takaichi could become the country’s first female Prime Minister and she is likely to increase government spending and support accommodative monetary policy. Other global markets were also up slightly.

AMD is up on news that Open AI is going to take a 10% stake in the chip maker.

The high from last Friday is resistance. If the market attacks it right away and it gets through, we could see steady buying. I am reluctant to buy gaps up. Let’s wait and see if we get the normal dip.

Support is the low from Friday and resistance is the all time high.

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