In this week’s Markets in Motion, Bruce Campbell opens with a look at his top-down indicators, which continue to flash green across short, intermediate, and long-term timeframes. With no weakness currently showing and early warning indicators remaining quiet, Bruce says the broader market backdrop remains constructive heading into the final weeks of the year.
He also unpacks the market reaction following last week’s Federal Reserve decision to cut interest rates by 25 basis points. While near-term rate expectations remain fluid, Bruce highlights data from Bank of America’s Global Fund Manager Survey, showing persistent concern around a potential AI bubble and continued crowding in the so-called “Magnificent Seven.”
From a contrarian perspective, he notes that gold positioning remains relatively small within U.S. portfolios, while energy stands out as one of the most underweighted sectors — potentially setting up an opportunity if economic conditions begin to re-accelerate in 2026.
Bruce also points to ongoing strength in junior gold miners relative to senior producers, a relationship that has favoured juniors for nearly two years and continues to signal a risk-on environment.
He wraps with a reminder that options expiry later this week could add volatility, particularly as the S&P 500 approaches a key gamma flip level — something traders will be watching closely into Friday.
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