$JPM & $NVDA Stumble, $WFC & $WMT Soar: Unpacking the AI Flavor of the Day

If you’re still reeling from Friday’s mini-crash and Monday’s FOMO rebound, you’re not alone. Catch my full breakdown of the recent action in these posts:

• Weekly Wrap - Reviewing Friday's Carnage
•  FOMO Bounce or Trap? Parsing Monday's Rally Before Bank Earnings

  

October 15th, 2025 - Technical Tuesday - 

After Friday’s mini-crash, and Monday’s FOMO-fueled rebound, the markets managed to throw yet another curve-ball: financials rallied while leaving J.P. Morgan in the dust? Let’s unpack the chaos, from $WFC’s 7% surge to $NVDA’s 4.4% slip, and pin down what’s really driving this whac-a-mole market. .

Right out of the gate it was clear that J.P. Morgan, and Goldman Sachs were not leading a rally in financials. Bloomberg headline read, "Big Banks Fail to Lift Equities", and what happened next? Financials rallied over 1%!  

 $WFC - Wells Fargo DCS Chart -the bid was raised above support in order to trap some short sellers. 

 I call this dirty tricks - pick the worst of the worst, and drive it into a short squeeze. Explains - in part - why  markets continue to trading in one of the biggest bubbles in American history. Valuation means shit!   

 I can almost hear Jim Cramer screaming at CNBC Pro members, "Get the Short Sellers"! Is this what they mean by animal instincts? I'll leave that for you to ponder. 

Reviewing The Broader Market Action  

Market ends mixed with Mag 7 stocks muted, financials break out above the 50 day ma on stellar bank earnings. Sector rotation... Whac-a-mole markets - $SPX end the day UNCH pic.twitter.com/r44swe7LY2

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

I can't remember the last time we saw a rotation out of Mag7, and into everything from Utilities, to Consumer Defensive, to Financials ( ex J.P. Morgan). Even Small Caps were seen leading yesterday's rally, and $RUT futures are glowing green this morning. 

Is this bullish? No, they're piling into mostly defensive positions, including gold, and silver, instead of buying the bloated banks. Small Caps? Meh 

Unpacking the AI Flavor of the Day 

After hyperactive investors were finished double dipping on Oracles candy bowl they moved onto Wally World for some AI flavored Pixy Sticks lol      

This popular tweets seemed to capture the moment perfectly:   

At this point all you can do is laugh pic.twitter.com/SioSMU2u1Y

— George Gammon (@GeorgeGammon) October 13, 2025

 Stay tuned—next week, we might see PetSmart announce an AI cat (smart) litter box to pump its stock!

Who can take this market seriously?  

Zeroing in on another Options Expiration Date  

I'm sure this rally could continue into Options expiration in 2 days, because options markets are a factor, and those who piled into short positions on Friday - in my opinion - really don't deserve to get paid... although we do sometimes see higher volatility on OPEX dates, so caution is warranted.    

 

 

Take Care, AA        

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