Market Update: Why We're Signaling Buy on Adobe ($ADBE)
The Magnetic Solution That Saved My Master Bedroom (And My Marriage)
For years, I've battled the same winter problem: our master bedroom turns into an icebox while every other room stays comfortably above 70 degrees.
The issue? Our bedroom has the largest number of windows in the house—lots of beautiful natural light, but also a massive surface area exposed to the elements. When temperatures drop below zero, my bedroom stubbornly hovers at 66 degrees or below. And trust me, I hear about it from my wife. Repeatedly.
Every winter, I'd go through the same routine: taping up windows and doors, checking for drafts, adjusting our radiant heat system. The problem with radiant heat is it takes time to respond to sudden temperature changes, so we're always playing catch-up. But here's the real dilemma—my wife loves opening the shades and enjoying the view. If I tape the windows properly to stop the drafts, we lose that entirely.
I was stuck between staying warm and staying married.
Then I discovered removable magnetic window insulation strips. These game-changing strips seal your windows against drafts but can be removed anytime you want. They're magnetic, so they go on and come off easily without damaging anything or blocking your view permanently.
The results? Our master bedroom now maintains the same temperature as the rest of the house. No more complaints, no more freezing nights, and my wife can still enjoy her morning views.
Sometimes the best financial investment isn't in the stock market—it's in household peace and a good night's sleep.
And honestly, that’s a great reminder for traders too: the goal isn’t to “seal everything shut” or react with brute force every time conditions change. It’s to build flexible protection—simple tools and rules that reduce the drafts (bad habits, emotional decisions, overexposure) without blocking your ability to participate when the setup is right. The best risk management looks a lot like those magnetic strips: it’s there when you need it, easy to adjust, and it keeps small leaks from turning into a full-blown freeze.
Review of Last Trades: Newmont Corporation ($NEM)
One of the cleaner setups I took recently came straight out of our Dynamic Power Trader (DPT) Services playbook: Newmont Corporation ($NEM) — the world’s leading gold miner and a name that often becomes a “pressure valve” for markets when macro uncertainty rises and traders rotate toward real assets.
In our Live Trading Room last Tuesday, the DPT model flagged $NEM as a long opportunity, and it was a great example of how we use AI-driven forecasts to identify timely entries when a chart is coiling and sentiment is shifting. The value of the system isn’t just that it finds candidates—it’s that it helps you focus on the trades that are aligning across signal, timing, and market context.
If you’d like to review the exact moment the setup was discussed and how we framed the trade in real time, you can watch the Live Trading Room recordings here:
https://yellowtunnel.com/live-trading-room-recordings#live-trading-room-recordings
Why this trade mattered (and what it highlights)
This $NEM trade also highlights one of the biggest differences between our paid vs. free offerings.
With the free tools, you can absolutely find ideas and do your own analysis—but you’re still responsible for the hardest part of trading: timing. You can be “right” on direction and still lose money if your entry is late, your exit is delayed, or you hesitate when price starts moving.
With our paid services—especially DPT—members get timely SMS alerts that help remove that hesitation. You’re not just seeing a symbol to watch—you’re getting the real-time notification of when to get in and when to get out, which is often the difference between catching the move and chasing it after the easy money is already gone.
Trades like $NEM are a reminder that edge isn’t only about picking the right stock—it’s about executing the plan with discipline. The market punishes late decisions, emotional decisions, and “I’ll do it in a minute” decisions. Our system is designed to keep you out of that psychological danger zone by giving you a structured, repeatable way to act when the probability is in your favor.
Current Trading Landscape
This week was a perfect snapshot of the market we’re living in right now: prices are still hovering near all-time highs, volatility remains unusually calm with the VIX parked around 16, and yet the path to each green day has felt harder than it “should” when you zoom in on the tape. Beneath the index-level strength, investors have been forced to constantly recalibrate around three forces that refuse to go away—tariff headlines, cooling macro data, and the market’s ongoing debate about how much AI optimism is already priced in.
For most of the week, that push-and-pull leaned mixed-to-negative. The S&P 500 and Dow logged multiple losing sessions, and while the Nasdaq managed a few brief bursts of resilience on tech rebounds, it still felt like the market was carrying extra weight. At times we saw rotation into value and cyclical areas, but it wasn’t enough to fully offset the pressure coming from mega-cap and AI-adjacent weakness earlier in the week. The “AI bubble” narrative resurfaced just enough to shake confidence in high-flying names—and the market traded like it still wants upside, but only if the data and rates keep cooperating.
That’s why Thursday stood out. The rally didn’t come easy, but when it showed up, it was decisive. The major averages moved higher together, with the S&P surging in that mid-1% neighborhood, the Dow jumping by several hundred points, and the Nasdaq doing the heavy lifting with an “around 2% at the highs” type move. What made it notable wasn’t just the size—it was the one-two catalyst punch that finally gave investors permission to take risk again: strong earnings from a key AI-linked company, followed by a cooler-than-expected inflation print.
Micron’s earnings were the first spark. As a critical supplier of high-bandwidth memory that sits right in the middle of AI server infrastructure, Micron’s report carried more weight than a typical single-stock beat. It helped reassure the market that AI spending isn’t just a narrative—it’s still flowing through real supply chains with real demand signals. After weeks of valuation debates and durability questions across the AI complex, Micron’s strength shifted the tone quickly and helped lift “recently struggling” AI names off the mat.
Then the inflation data hit—and that became the accelerant. The November CPI print came in at 2.7% year over year, with core CPI at 2.6% year over year—both cooler than expected. The reaction was classic and immediate: stocks spiked and bond yields eased as the market leaned into the idea that inflation may be cooling faster than feared. In one release, the conversation pivoted from “how long will higher rates choke momentum?” toward “does the Fed have more room to ease as we move into 2026?”
Rates confirmed that shift in real time, with the 2-year drifting toward the mid-3% area and the 10-year easing toward the low-4% range. But the bigger point is that yields have remained volatile overall—especially the 10-year, which has been swinging in a wide band roughly between 3.6% and 4.2%. That range matters because it’s effectively the market’s valuation thermostat. When yields cool off, the market can justify richer multiples and reward growth again. When yields snap higher, those same valuations suddenly look fragile, and capital rotates back toward value, defensives, or cash-like positioning.
The Fed narrative remains the overlay that keeps everything choppy. Coming off the prior week’s quarter-point cut paired with a cautious message, markets are still trying to reconcile “cuts happened” with “easing might not be as fast as people want.” After Thursday’s CPI surprise, expectations for early-year cuts firmed up (even if they’re still not the base case), and the market leaned more heavily into the idea of multiple cuts extending through the coming years. This tug-of-war between what the data suggests and what the Fed will actually deliver is a major reason the week felt so uneven: investors are simultaneously trying to price a soft landing, an easing path, and elevated uncertainty around policy and tariffs.
And tariffs truly mattered this week. The continuing updates didn’t just create headline volatility—they amplified uncertainty around margins, supply chains, and inflation itself. When tariffs are front and center, it becomes harder for the market to fully trust clean “disinflation” narratives, and it becomes harder for companies to guide confidently. That uncertainty tends to show up as rotation, hesitation, and the kind of uneven index action we saw for much of the week—especially when combined with a labor market that’s clearly cooling.
On that front, the macro data gave the market a second reason to stay cautious earlier in the week. The delayed jobs report added fuel to recession-watch conversations as unemployment ticked up to 4.6%, the highest since 2021, while job creation slowed sharply. Business activity measures cooled to a six-month low and retail sales appeared to stall, hinting at a more cautious consumer. Put together, it paints a picture of an economy that’s losing momentum—maybe not breaking, but cooling enough that earnings expectations and risk appetite can’t remain carefree forever.
Friday’s action reinforced that “not broken, but sensitive” theme. Stocks pushed higher again as Wall Street wrapped up the final full week of 2025, with the Dow up about 300 points, the S&P 500 up roughly 0.8%, and the Nasdaq up around 1%. Yields, however, firmed back up, with the 2-year around 3.49% and the 10-year near 4.15%—a reminder that the rate backdrop can still tighten quickly if the bond market decides inflation risk or issuance pressure is reasserting itself. Sector-wise, tech led, but health care, financials, industrials, and materials weren’t far behind, which is exactly what you want to see when a rally is trying to feel “real” and not just a one-sector story.
Consumer psychology remains fragile. The University of Michigan’s consumer sentiment index came in at 52.9 for December—slightly under expectations—while still sitting meaningfully below where it was a year ago. Even with a small month-to-month improvement, a large share of respondents still expect unemployment to rise over the next year, and inflation remains top of mind. That’s the reality of this phase of the cycle: people can adjust to higher prices, but they don’t relax until they believe job security is stable.
This brings me to where I’m positioned mentally: I’m still in the market-neutral camp. Momentum has deteriorated enough that I respect the “higher for longer” risk—especially if yields re-accelerate and unemployment continues to tick up. At the same time, the fact that we’re still near all-time highs with volatility subdued tells you something important: there’s still plenty of capital that wants to buy dips, particularly when inflation prints cooperate and AI demand signals remain intact.
From a levels and roadmap perspective, I still see a path where SPY can work toward the 680–700 zone if the market continues to believe in a controlled cooling cycle and a manageable Fed path. But in the near term, I’m watching 620–640 as the key support band for the next few months. The longer-term trend can remain intact—but the short-term tape is sensitive, and it won’t take much to trigger sharper rotations again.
24 Hours Left: Your 50% Discount is Ready (AI Signals Included)
Can I be honest with you?
When I first started trading, I lost money. Not because I was dumb, but because I was doing it alone. No guidance, no signals, just me and Google trying to figure things out.
It sucked.
So when we built this AI trading system + live community, I made sure it was the exact thing I needed back then.
Right now, with all this uncertainty around tariffs and the Fed's rate cut decisions, the markets are moving in ways that create real opportunities. And I'm sitting here thinking about all the times I would've killed to have something help me make sense of the chaos and spot what actually matters.
Click here to learn more
SECTOR SPOTLIGHT
This market has been sending a pretty consistent message: the indexes may be near the highs, but leadership is still the deciding factor. With volatility quiet (VIX hanging around the mid-teens) and investors constantly toggling between tariff uncertainty, cooling growth signals, and “is AI already priced in?” fears, the only thing that really changes the tone is when the market’s most influential growth engine steps back on the gas.
That’s exactly what made this week feel so revealing. Early on, the tape had that “upside is allowed, but not gifted” vibe—choppy sessions, pressure on mega-caps, and a market that seemed allergic to overconfidence. Then Thursday hit, and the whole mood shifted because the catalysts lined up perfectly: a real AI supply-chain confirmation (Micron) followed by a cooler inflation print (CPI and core CPI easing below expectations). When inflation cooperates, yields loosen their grip, and suddenly investors don’t feel punished for owning growth again. That’s when the market stops debating valuation and starts chasing momentum—fast.
And the rate backdrop is the key: with the 10-year moving around that low-4% zone and the 2-year still in the mid-3% range, even small yield swings become a valuation thermostat. If yields stabilize or drift lower, the market can justify paying up for durable growth and recurring cash flows. If yields pop, the air gets thinner quickly, and you see the exact rotation we dealt with earlier in the week—out of high-multiple names, into value/defensives, and back into hesitation.
The sector that benefits most from that “rates down + AI demand real + dip buyers active” combination is the one the market keeps trying to rotate away from… and keeps coming right back to whenever the data gives it permission.
Toward the end of the week, we saw it clearly: that leadership returned, breadth improved, and the risk-on posture looked more believable. This is why I keep framing the current environment as a tug-of-war—because when the macro cooperates, the market’s favorite engine reasserts itself quickly.
That engine is Technology—and the cleanest, most efficient way to express that view is $QQQ.
Why $QQQ here: it’s a direct line into the market’s core growth complex—mega-cap platform names, software, semis, and the broader innovation stack that tends to lead when inflation cools and the market regains confidence. In a week where AI demand signals firmed up and CPI gave traders breathing room, $QQQ is the vehicle that captures the “leadership rebound” theme without having to pick a single winner. If we keep getting cooperative inflation prints and yields don’t re-accelerate, this is the area most likely to carry the next leg higher.
TRADE OF THE WEEK
If this week taught us anything, it’s that the market still wants growth—but it wants the right kind of growth: companies that can justify premium valuations with durable demand, recurring revenue, and a credible AI monetization path.
That’s why Adobe Inc. ($ADBE) is my Trade of the Week—and why it’s a name I’m adding.
Here’s the setup through the lens of this week’s trading landscape:
1) The macro gave growth a window, and Adobe fits the “rates-sensitive winner” profile.
Thursday’s CPI/core CPI cooldown did more than spark a one-day rally—it shifted the tone from “higher-for-longer risk” toward “the Fed has room if cooling continues.” When that narrative takes hold, the market tends to reward high-quality software names with strong cash flows and sticky subscriptions. Adobe sits right in that sweet spot.
2) AI is being repriced, and Adobe is positioned on the “AI that actually ships” side of the debate.
This week’s AI mood swung hard: early-week “AI bubble” anxiety, then a sharp re-endorsement when Micron validated real infrastructure demand. In that type of environment, I want exposure to a name where AI isn’t just hype—it’s embedded into workflows people already pay for. Adobe’s ecosystem (creative, document, and digital experience) is exactly that: it’s already a daily toolset for creators, marketers, and enterprises—and that creates a natural runway for AI features to drive upgrades, retention, and higher-value tiers over time.
3) Tariff noise matters less for Adobe than for many other “AI-adjacent” plays.
This week reminded us tariffs aren’t just headlines—they create real uncertainty around costs and guidance. Adobe is less exposed to physical supply chains and imported input costs than many industrial or consumer names. In a market where tariffs keep resurfacing, that insulation is valuable.
4) It’s a “participate without needing perfect conditions” type of tech exposure.
If yields drift lower and the market keeps rewarding growth, Adobe tends to participate. If the economy cools further and spending becomes more selective, Adobe still benefits from being a core productivity/creative platform with subscription visibility. In other words, it’s a tech name that can work in a risk-on push without being purely dependent on euphoria.
How I’d approach the buy: I like adding in a disciplined way—either on a clean continuation day when QQQ leadership is strong, or by scaling in on a controlled pullback rather than chasing a spike. The goal is to stay aligned with what this week reinforced: when inflation cooperates and AI confidence returns, the market rewards quality growth fast—but the tape can still whip around if yields jump.
Bottom line: Buy $ADBE as a high-quality tech leader that matches the market’s current “permission structure” (cooler inflation + stable yields + real AI demand). If this tape is going to keep grinding higher into 2026, Adobe is the kind of name I want working for me—because it’s positioned to benefit when growth leadership reasserts itself, and it doesn’t need a perfect world to justify owning it.
This week, I’ll add Adobe Inc. ($ADBE) to my portfolio!
And one more thing! Our track record speaks for itself from the standpoint of a Winning Trades Percentage, Average Return Per Trade, and Net Gain. Just take a look:
The consistent performance of our services is just incredible. My historical stellar performance is made possible by being right on 82.62% of all trades that I made, with an average profit of 39.72% per trade on our collective trade recommendations. To my knowledge, this trading performance is one-of-a-kind and stands alone in the marketplace for superior trading advice, where our numbers and results speak for themselves.
As we move into the end of 2025, now is the perfect time to reassess your trading strategy and take your portfolio to the next level for the upcoming year! Visit our website at www.yellowtunnel.com to explore our range of services and select one as your default trading system. With the power of our AI-driven platform, YellowTunnel is designed to help you navigate the complexities of the market, refine your strategy, and drive profitability in 2025.
Whether you’re focused on real-time trade opportunities, advanced analysis, or developing a disciplined trading mindset, we’ve got the tools and insights to guide you. As the year unfolds, let's work together to make 2025 the most profitable year for your portfolio. But remember—successful investing starts with informed decisions. Always conduct thorough research and assess your risk tolerance before executing any trades.
Let’s make this year a transformative one for your financial growth!
One more thing, I've had the opportunity to take additional action with a great organization supporting families in Ukraine directly. Gate.org is a foundation where fundraising is held for specific families, allocating funds to multiple families currently living in Ukraine. I am on the board of directors for this great initiative and encourage everyone to check it out and donate if possible. The war in Ukraine is escalating, and families are being negatively impacted and displaced daily. To learn more about this initiative to help families, please see the link below:
Wishing you a week filled with resilience, growth, and prosperous opportunities!