Daily Commentary: October 29, 2025

Auto Post1Option Commentary

A 25 Basis Point Rate Cut Is Expected

Posted by Pete Stolcers on October 29
www.oneoption.com

Today the Fed is expected to cut rates and they might signal another rate cut this year.

PRE-OPEN MARKET COMMENTS FED-DAY – Earnings and interest rates drive the market and today we are going to get a heavy dose of both. The Fed is expected to cut and GOOG, META and MSFT will report after the close.

The market has been floating higher and good news is expected. In my comments I’ve mentioned why the Fed might be more dovish the rest of the year. Earnings reactions to this point have been positive.

The government shutdown continues and Democrats are feeling the pressure within their own voter base to pass the continuing resolution. When this happens, the market will rally.

Trump is meeting with Xi tomorrow and as he completes his tour, he has been signing trade deals with SE Asia and Japan. He is close to an agreement with South Korea. He has been lowering tariffs in exchange for firm foreign investment commitments in the US.

The market has entered a seasonally bullish period and there is no stopping this freight train. I view this as a seller’s boycott.

We typically see quiet trading ahead of the FOMC statement. There is a lot of news pending and I will wait for the reaction. I have some long positions, and many of my naked puts will expire Friday. After this round of news, I will be more active. If I can’t buy a dip in the next week, I will sell naked puts on stocks I want to own. That will give me some breathing room. Day traders should buy strong stock when the market dips, but I suggest being relatively passive today.

Support is at the low from Tuesday and resistance is at $690.

Live Trading

Open an Account

Paper Trading

Register