Daily Commentary: October 31, 2025

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Full Steam Ahead

Posted by Pete Stolcers on October 31
www.oneoption.com

Earnings and interest rates drive the market and the news this week has been excellent.

PRE-OPEN MARKET COMMENTS FRIDAY – This week the Fed cut interest rates and we could see another rate cut in December. They ended quantitative tightening and that is another form of easing. Mega cap tech earnings reactions from AMZN, AAPL, GOOG, and MSFT have been excellent with the only exception being META.

Trump has returned from his Asian tour with new foreign investment commitments in the US and trade deals. It seems like the talks with China went well, but they can’t be trusted. Rare earth minerals are essential and they have still not lifted there licensing requirements.

The government shutdown continues and Republicans are considering the “nuclear option” where they can remove the filibuster rule and pass the CR with a simple majority in the Senate. This is a dangerous route to take because it sets precedent. Welfare benefits will run out tomorrow and millions will feel pain if this continues. I believe they need 5 votes and there are signs that there are some moderate Democrats who might pass a clean bill. In either case, this should not last much longer.

I don’t know how much I can trust the news, but is seems like Russia is getting its ass kicked. Ukraine has been ravaged and they have nothing to lose. They are sending drone attacks into Moscow and destroying the power grid and refineries. Ukraine destroyed a dam and 4 battalions of Russian troops are trapped/vulnerable. China and India have agreed to stop buying Russian oil and the ruble is getting crushed. From a humanitarian standpoint, I hope this war comes to an end. This has not had a market impact so I am not looking for a relief rally when it does end.

There’s not much to stand in the way of this rally. Be patient and buy dips. I have many naked puts expiring today for a max gain and I am generating returns of 8-10% on these trades. Now that this round of news has passed, I will be looking for new post earnings opportunities.

Support is the low from yesterday and resistance is the all-time high.

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