The Trading Post | 12.12.25

December 12, 2025

Good morning,

The Fed didn’t just cut rates again…it turned the liquidity spigot back on, Oracle and Broadcom reminded everyone that revenue growth without margins is just expensive hope, the Dow and S&P tagged fresh records while tech took a breather, cannabis stocks went full meme on a Trump headline, and Lululemon rallied because boards finally discovered the eject button.

Want to follow a proven options system with a 70%+ win rate? Robert Roy's Power Option Plays delivers twice-weekly trade alerts with clear entry and exit plans. 

Let’s jump in.

Pre-Market Performance

As of 12.11.25 market close.

Market News

  • Fed Turns the Liquidity Spigot Back On: The Fed delivered its third rate cut of 2025 and begins $40B in Treasury bill purchases today, quietly expanding the balance sheet again. Markets heard one thing: liquidity beats theory. Bloomberg 

  • Small Caps Take Control: The Russell 2000 pushed to fresh record highs as money rotates out of mega-cap tech and into cyclicals, financials, and materials — classic late-cycle breadth expansion. Reuters

  • AI Trade Gets a Margin Reality Check: Oracle collapsed after ballooning AI capex crushed free cash flow, while Broadcom warned of margin compression despite strong AI demand. Revenue growth is easy. Profits are optional — until they’re not. CNBC

  • Record Highs With New Leadership: The Dow and S&P 500 notched all-time highs while the Nasdaq lagged, signaling a healthy — and uncomfortable — broadening rally away from the Magnificent Seven. Reuters

  • Cannabis Stocks Go Full Meme: Pot stocks ripped 15–30% premarket after reports Trump may push marijuana to Schedule III, reigniting a high-volatility, headline-driven trade. Reuters

  • Volatility Takes a Nap: The VIX slipped below 15, its lowest level in months, as traders price in smooth sailing — which historically never lasts as long as people think. CNBC

A Message From Wealth Builders HQ

Trade Options with Confidence Using a Proven System 

Power Option Plays (POP) isn't just another options alert service—it's a complete trading education wrapped around real-time trade opportunities. 

Here's what makes POP different: 

Rob Roy personally analyzes hundreds of stocks every week, selecting only the highest-probability setups based on his Fibonacci and moving average system. You get twice-weekly recorded trainings that walk you through exactly why each trade setup works, so you're learning the methodology while following along. 

Since its founding, POP has maintained an average success rate above 70%, generating millions in profit in simulated trading accounts. The system focuses on repeatable patterns using the same core stock candidates, which means you're building pattern recognition with every alert. 

What You Get: 

  • Biweekly recorded training videos breaking down current market setups 

  • Trade alerts with specific entry points, position sizing, and exit strategies 

  • A proven tracking system that shows you exactly when to scale in and out 

  • Quarterly live Q&A sessions ("Mastering The Trade") to refine your approach 

  • Access to Rob's complete watchlist with bias indicators (bullish, bearish, or neutral) 

Whether you're swing trading or day trading, POP teaches you how to fish while giving you the best fishing spots. You'll learn to identify your own setups using Rob's Fibonacci-based system while following his alerts on proven candidates. 

Ready to trade with a plan? Check out Power Option Plays and start building your options trading confidence with a system that actually works. 

Trade Ideas

Advanced Micro Devices (AMD), Apollo Global Management (APO), Broadcom Inc (AVGO), Becton, Dickinson and Company (BDX)

Builders FirstSource, Inc. (BLDR), C.H. Robinson Worldwide, Inc (CHRW), CrowdStrike Holdings, Inc (CRWD), Deere & Company (DE)

General Electric Company (GE), International Business Machine (IBM), Direxion Daily Junior Gold (JNUG), Lowe’s Companies, Inc (LOW)

Lululemon Athletica (LULU), 3M Company (MMM), NVIDIA Corporation (NVDA), NXP Semiconductors N.V. (NXPI)

QUALCOMM Incorporated (QCOM), Roku, Inc (ROKU), Shopify, Inc (SHOP), iShares PHLX SOX Semiconductor (SOXX)

Simon Property Group, Inc (SPG), Constellation Brands, Inc (STZ), Atlassian Corporation Plc (TEAM), Direxion Tech Bull 3X Shares (TECL)

TE Connectivity Ltd (TEL), Targa Resources Corp (TRGP), Take-Two Interactive Software (TTWO), Texas Roadhouse, Inc (TXRH)

Wix.com Ltd (WIX), Advanced Micro Devices, Inc (AMD), Apollo Global Management (APO), Broadcom, Inc (AVGO)

Want to learn how we trade these? Learn the setup we call the “High Volatility Switchback” trade.

Get these ideas delivered to your inbox daily with Trade With Rob. It’s 100% free. Sign up here.

Daily Moment of Zen

❝

The expected never happens; it is the unexpected always.

John Maynard Keynes

Why It Matters:

Markets don’t move on what should happen — they move on what surprises consensus. Rate cuts get front-run, earnings get “whispered,” and by the time something is fully expected, it’s already priced into oblivion. The real money is made when positioning is wrong, narratives crack, and traders realize they were all leaning the same way.

That’s why the biggest moves rarely come from the headline itself, but from how the market reacts after it hits. If the crowd expects fireworks and gets a spark, stocks dump. If everyone braces for disaster and nothing breaks, markets rip higher out of pure relief.

Trading isn’t about predicting the future. It’s about recognizing when expectations are stretched, positioning is crowded, and the next surprise has asymmetric risk. The unexpected doesn’t just happen — it’s where P&L is born.