Market rotation accelerates as Nasdaq risks a lower high

Welcome back everyone to Stock Market Weekly Episode #811 for Friday, December 12, 2025 where we will be breaking down the most important trends, price action, and noteworthy moves across financial markets.

As always, we will share extensive analytics on the S&P500 (SPX), Nasdaq 100 (NDX), Russell 2000 (RUT), and current volatility environments.

Markets covered

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Stocks covered

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In this week’s episode

This week’s Stock Market Weekly breaks down a meaningful shift in market leadership as money rotates out of mega-cap tech and into a wider mix of sectors. While the Fed’s rate cut grabbed headlines, the more important development was growing weakness in the Nasdaq 100 (QQQ) alongside strength in small caps, industrials, and financials. This divergence suggests the market is transitioning into a stock picker’s environment rather than one driven by a handful of dominant names.

We also examine what this rotation means for traders heading into next week, focusing on key technical levels in SPY and QQQ that could define near-term direction. Gold and silver continue to attract capital, volatility remains surprisingly calm, and Bitcoin still appears to need more time before its next major move. The episode emphasizes why flexibility and selective positioning matter as leadership quietly changes under the surface.

Video episode timestamps

• 0:00 Introduction – key events from this week’s trading
• 0:45 Sponsor message – IBD Market Surge and Digital subscription
• 1:04 Fed interest rate decision and market reaction
• 2:28 Oracle earnings disappointment and AI sector concerns
• 4:40 Broadcom guidance impacts AI stocks
• 5:13 Index returns, sector analysis, and market breadth
• 7:27 Dollar weakness and Treasury yield concerns
• 7:45 Sector performance – materials, financials, industrials leadership
• 8:46 52-week highs and lows showing market breadth expansion
• 9:38 Bitcoin consolidation and outlook
• 10:30 Major indices price action analysis (SPY, QQQ, IWM)
• 13:45 NASDAQ 100 lower high pattern and breakdown risks
• 16:17 Russell 2000 strength and trading strategy
• 17:23 VIX remaining subdued despite market pullback
• 18:04 Gold breakout and metals sector strength
• 19:05 International stocks and industrial sector breakouts
• 20:03 Financials breaking out after months of consolidation
• 20:53 Galahad trading system performance and positioning
• 22:00 Momentum model trade ideas – Planet Labs, Nurix, Joby Aviation
• 23:56 Week recap and outlook

We hope that you enjoyed this week’s episode, and look forward to having you back next week!