ETF Tracker Newsletter For December 12, 2025

Market Overview - The Dow reached a new record high, driven by value and cyclical stocks, while technology stocks faced significant selling pressure, particularly Broadcom, which dropped 9% despite beating earnings and forecasting a doubling in AI chip sales [4][5]. - The week was characterized by mixed signals: a dovish Federal Reserve and decent macroeconomic data contrasted with profit-taking in AI stocks and valuation concerns, leading to the Nasdaq and S&P being the week's biggest losers, while the Dow and small caps performed better [6]. Sector Performance - Financials, healthcare, and industrials showed gains, indicating a classic rotation trade away from technology stocks [5]. - The "Magnificent Seven" tech stocks experienced substantial declines mid-week, while the remaining 493 S&P stocks outperformed [6]. Bond and Currency Markets - Bond markets showed mixed performance, and the dollar remained near three-month lows, while precious metals gained attention, with gold surpassing $4,300 and silver reaching $65 intraday before profit-taking occurred [7]. Investment Sentiment - The current market dynamics raise questions about whether the rotation from tech to broader market sectors is a healthy sign for year-end performance or an early indication of potential issues in the ongoing bull market narrative for 2025 [8]. Trend Tracking Indexes (TTIs) - The domestic TTI closed at +6.84% above its moving average, down from +7.93%, with a "Buy" signal effective from May 20, 2025. The international TTI closed at +10.05% above its moving average, down from +10.56%, with a "Buy" signal effective from May 8, 2025 [12].