A Market Entering the Pause With Its Eyes Open  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

December 21, 2025   |   Read Online   Dio Pouerie & Bo Nichols TRADERS & QUANTS SUNDAY BRIEFING A Market Entering the Pause With Its Eyes Open     From the T&Q Desk     Markets enter the final, holiday-shortened week of the year with structure intact and questions unresolved. Last week did not end with a verdict. It ended with a framework. Capital finished the week positioned not for surprise, but for verification. The rally held. Volatility stayed contained. Leadership narrowed without breaking. And policy, rather than price, remained the central constraint shaping behavior. This matters heading into Christmas week because the calendar thins just as the macro conversation sharpens. With earnings largely absent and liquidity lighter than usual, markets will lean more heavily on data interpretation, policy signaling, and positioning inertia. That combination tends to reward discipline over conviction and interpretation over reaction. The week ahead is not about discovering new narratives. It is about testing whether the ones that emerged last week can withstand quieter conditions, thinner volumes, and a final round of macro confirmation before year-end books close.         Premier Feature     Nvidia's Secret Partner... This Is The New AI Chip Powerhouse I bet you've never heard of it... but this newly public company is set to become key to Nvidia's seat on the AI throne. And for now... you can get in while it's still cheap. Details Here!         The Market's Mental State Matters More Than the Calendar     Holiday weeks often reduce activity, but they rarely reduce meaning. The market is not entering this pause from a position of complacency. It is entering from a position of selective engagement. Investors are not aggressively hedged, but they are no longer paying for assumptions without evidence. That posture will shape how each data point is absorbed. The question is not whether the data surprises. It is whether the data alters confidence in the framework markets are already trading. So far, that framework looks like this: growth is slowing but intact, inflation is easing unevenly, policy is supportive but conditional, and liquidity is present but no longer permissive. Nothing on next week's calendar directly challenges that view. But several releases will test its edges.         Durable Goods and the Health of Capex     Durable Goods Orders will be one of the more closely watched releases, not for the headline number, but for what it reveals about corporate behavior late in the year. Markets are sensitive to any signal that capital expenditure is stalling rather than moderating. Last week's repricing of parts of the AI infrastructure trade sharpened attention on balance sheets, financing, and timing. Durable goods tied to technology, transportation, and industrial equipment will be read through that lens. A soft print would not trigger alarm. It would reinforce the idea that companies are becoming more selective, not retreating. A stronger print would likely be welcomed only if it shows concentration in areas tied to near-term demand rather than long-dated ambition. The market is no longer paying for capex volume alone. It wants clarity on returns.         GDP and Corporate Profits as Confirmation, Not Catalyst     The upcoming GDP and Corporate Profits releases are backward looking, but that does not make them irrelevant. Markets will treat them as confirmation tools rather than catalysts. The focus will be on margins, productivity, and the composition of growth rather than top-line expansion. A steady GDP print paired with resilient profits would reinforce the idea that the economy is cooling without cracking. More important is what these data say about operating leverage. If profits hold up despite slowing growth, it supports the rotation toward balance sheets and cash flow that has already been underway. If margins show strain, it would sharpen differentiation further rather than prompt broad selling. This is a market that believes the cycle is slowing, not ending. These releases will either validate that belief or quietly complicate it.         From Our Partners     NVIDIA's Next 100X Breakthrough NVIDIA's revolutionary new invention just paved the way for the U.S. to achieve AGI 30 years early. And Jeff Brown, the Silicon Valley insider who called NVIDIA in 2016... Says 7 of NVIDIA's "hidden partners" could skyrocket after Jensen Huang's big announcement as early as January 6, 2026. Handing early investors a once-in-a-lifetime chance to pocket generational wealth in the FINAL wave of America's AI boom. Click here to see the shocking AI story nobody else is telling you.         PCE Prices and the Boundaries of Policy Comfort     PCE Prices remain the most sensitive release of the week, even in a thin holiday tape. Markets are not looking for perfection. They are looking for permission. A print that holds inflation near recent levels would reinforce the Fed's patient stance and keep rate-cut expectations framed as a 2026 conversation rather than an imminent pivot. A modest upside surprise would likely be absorbed rather than punished. Positioning has already adjusted. Long-end yields have done much of the tightening work. The market's reaction function has changed. What would matter more is composition. Any evidence that services inflation remains sticky or that tariff-related pressures are bleeding further into core categories would reinforce the idea that policy flexibility is limited. That would not break markets, but it would continue to cap multiple expansion. Inflation no longer needs to fall rapidly. It just cannot reassert dominance.         Industrial Production and the Reality of the Cycle     Industrial Production will serve as another reality check on the state of the cycle. Here again, the market's tolerance is asymmetric. Weakness that aligns with gradual cooling is acceptable. A sharper contraction would force a reassessment, but that is not what positioning suggests investors expect. Production tied to energy, defense, and infrastructure will be watched closely. These areas have benefited from policy alignment and spending visibility. Resilience there would reinforce the notion that industrial demand is being reshaped rather than erased. The market is less concerned with aggregate output and more focused on where activity is consolidating.       Consumer Confidence and the Household Constraint     Consumer confidence data will be read with more skepticism than usual. Households remain under pressure from cost-of-living dynamics even as headline growth holds. Confidence measures tend to lag behavior, but they offer insight into discretionary risk and sentiment elasticity. Markets will be sensitive to any further deterioration, not because it implies immediate contraction, but because it reinforces the uneven nature of this cycle. Weak confidence paired with stable spending would continue to support the view that consumers are constrained, not collapsing. That distinction keeps policy debates alive and supports selective exposure rather than broad consumer optimism.         Initial Jobless Claims and the Labor Narrative     Jobless claims remain one of the few truly real-time indicators on the calendar. The market's base case is continued gradual cooling. Claims that drift higher without spiking reinforce that view. A sudden jump would attract attention, but history suggests holiday weeks often distort these prints. What matters is trend persistence, not weekly noise. Unless claims break decisively higher, labor will remain a moderating force rather than a shock catalyst. The Fed, and markets, remain comfortable with slow loosening. They are not prepared for abrupt deterioration.         A Week Without Earnings Is Still a Week About Earnings     The absence of major earnings reports does not remove earnings from the conversation. Last week's Micron results reframed how markets think about execution and validation. That mindset will carry forward. In a quiet week, investors often revisit positioning in light of what they have already learned. Names with near-term earnings visibility, policy alignment, and balance-sheet strength are likely to remain supported. Areas dependent on long-dated growth assumptions may continue to drift rather than recover. The lack of new earnings reduces noise. It does not reduce scrutiny.         From Our Partners     The Greatest Stock Story Ever? I had to share this today. A strange new "wonder material" just shattered two world records — and the company behind it is suddenly partnering with some of the biggest names in tech. We're talking Samsung, LG, Lenovo, Dell, Xiaomi… and Nvidia. Nvidia is already racing to deploy this technology inside its new AI super-factories. Why the urgency? Because this breakthrough could become critical to the next phase of AI. And if any tiny stock has the potential to repeat Nvidia's 35,600% climb, this might be it. See the full story here.         Liquidity, Positioning, and Year-End Behavior     Liquidity will be thinner, but not fragile. Fed plumbing has stabilized funding markets. Repo stress is low. Volatility remains contained. That reduces the risk of disorderly moves even as participation drops. Year-end positioning will matter more than incremental news. Investors are more likely to defend existing exposure than initiate new risk. That favors continuity over reversal. Sharp moves, if they occur, are more likely to reflect positioning imbalances than new information.         Closing Lens     The week ahead is not designed to surprise. It is designed to confirm. Markets enter the holiday pause with a clearer understanding of their constraints. Policy support exists, but credibility matters. Liquidity flows, but selectively. Growth persists, but unevenly. Inflation eases, but not without friction. The data ahead will not redraw the map. It will refine the edges. In that environment, the market's behavior matters more than its direction. How capital responds to quiet confirmation will reveal more than any single release. The year is ending not with excess, but with calibration. That is not a reason for fear. It is a sign of a market that has learned to listen again.       Update your email preferences or unsubscribe here © 2025 Traders & Quants, LLC 522 S. Hunt Club Blvd Suite 119 Apopka, FL 32703, United States of America Terms of Service