FOMO Bounce or Trap? Parsing Monday's Rally Before Bank Earnings

 

October 13th, 2025 - Stocks staged their biggest comeback since May's short squeeze—nearly to a T, as I laid out in Sunday's Weekly Wrap - Reviewing Friday's Carnage

"Barring a $VIX breakout (unlikely with a banking holiday looming), this looks like a typical one-day sell-off. But here’s the kicker: every recent market crash seems to trigger an even more vicious response in the FOMO, especially in crypto and speculative plays. Why should this time be different?"

I went all-in at Friday's close and caught another nice move. But only a fool leaves money on the table with $VIX hugging 20 

Pre-market drivers screamed "buy the dip"—fueled by Broadcom (our new Mag 7 leader, as covered here (link)). More AI headlines juicing algos, déjà vu all over again?

Predictable FOMO hit $ARM +11%, $AI +8%, $ON +9.55%, $DDOG +3.44%, and beyond. Even China popped 3%—suckers rally vibes, anyone? Dow internet stocks (my top sector pick) gained >1%.

$WEBL —flagged last week—is still setting up for massive upside

Taco Tuesday Washout Recap

 

Friday Trump threatens 100% tariffs on China. Then Sunday he posts on Truth Social,  "Xi was just having a bad moment"?     

It was not an incredible week for US investors, Crypto enthusiasts, or the Epstein victims

— Veteran Market Timer (@3Xtraders) October 13, 2025

Friday's carnage was an eye-opener: I'm unearthing catalysts like Japan's pump-and-dump and - GET THIS! - yet another stealth rally preceded the crash - "Strongest rally since 2008 fuels hopes of European bank stocks' revival"  helped the $CAC gap to new highs amid France's gov't chaos - what on earth? -, indeed.

 Precious metals/ Gold & Crypto 

Gold continues to rally into the biggest bubble we've seen in over 50 years. 

Gold futures are trading nearly $1000 above the 200 day moving average. @Grok, can you pin down the last time gold became this over-extended - using this metric? pic.twitter.com/FRwK58N740

— Veteran Market Timer (@3Xtraders) October 13, 2025

Can you guess what's about to come next? 

 

October 14, 2025 - This morning we're seeing market futures lower, led by the continuing collapse of cryptocurrencies.  

Trader nets $192M Bitcoin profit in suspicious pre-Trump tariff announcement trade $BTC #CryptoCrash #TrumpTariffs https://t.co/SPu8Qcvcao

— Veteran Market Timer (@3Xtraders) October 12, 2025

Looks like Crypto is crashing again, and dragging on US futures. Chinese tech also getting crushed #China pic.twitter.com/cpUQoWkzZZ

— Veteran Market Timer (@3Xtraders) October 14, 2025

I'm hoping for a full crypto flush, in order to give investor intelligence a boost, and to unpeg US tech companies from this failed experiment.     

This morning we're seeing market futures lower, led by the continuing collapse of cryptocurrencies. 

 I'm hoping for a full crypto flush, in order to give investor intelligence a boost and to unpeg US tech from this failed experiment. 

Bank Earnings Outlook

Nothing spectacular expected, but financials should rebound post-selloff. $JPM, Citi $C - all the usual suspects.

Take Care, 

AA 

   

 

 

 

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