Yesterday: Monday Oct. 20, 2025 we saw plenty of follow-through on Friday's market recovery - which I covered over the weekend: Saturday, October 18, 2025, Markets Recover, Crypto Continues to Stumble, Gold Miners Crack [linked]
Monday's rally seemed to be driven mostly by a snap-back rally in gold miners, rare earths, Why Cleveland-Cliffs Stock Popped Today [motleyfool.com], cryptocurrencies, and the Russell 2000 small caps - which gapped up over 1%, to close the day up nearly 2% (1.95%).
I saw the comeback rally of the past 2 days as a golden opportunity to take some profits, that is until I encountered an "Excessive Trading" Warning, on Fidelity's Website, and that was enough to persuade me to cancel my sell order. If I had gone through with the sell order, I would've been barred from trading the fund we're sitting in, for the next 45 days, and as with many 401k funds, there just aren't many good funds to choose from... to begin with. In other words, the available choices suck.
So I went with "Plan b", which is to endure through any choppiness we see as earnings season, and the next FOMC announcement converge, and add on any further market weakness between now and then.
Trading remains choppy, as stocks continue to consolidate in a tight range
$WEBL (3X Dow internet Bull ETF) - to prove my point. This is the trade I recommended nearly 3 weeks ago. Top 3 holdings: $META, $AMZN, & NFLX - do your own due diligence, by charting the main components.
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| $WEBL remains stuck in a tight range ahead of earnings |
Tuesday, October, 21 2025 - we're seeing some weaknesses in the pre-market session, which seems to be driven by selling in Metals, and crypto markets, and profit taking after Monday's surge.
The only real story I could find that may have contributed to the weakness we're seeing in the pre-market session earlier:
- Amazon Web Services outage cripples major platforms worldwide [thethaiger.com]
- Stock Futures Fall (on profit taking) as Markets Brace for Key Earnings [barrons.com]
Market Futures Recover on Blow Out GM Earnings
BREAKING NEWS:
Funny, how Wall Street has managed to get every aspect of the trade tariffs wrong, yet it's the Trump hating liberal short sellers who continue to get the brunt of it lol -maybe they should sue...?!
Crypto continues to drag on the market - no big surprise
I was hoping to buy some Ethereum calls on Friday, but ended up only pulling the trigger on 1, before dumping several put positions. To be honest I didn't find the entry point I was hoping for, and dumped the call I had purchased on Friday, yesterday morning, BUT I'll be looking for re-entry on this morning's retest of Friday's lows.
$ETHA (Ethereum iShares Trust ETF) Looking to purchase the $35 strike calls, October 31st, weekly exp.
We're seeing some weakness in Metals on a Strong dollar
The double top in Gold tweeted late last night
The double top in Gold pic.twitter.com/Lr0qa3V59M
— Veteran Market Timer (@3Xtraders) October 21, 2025
$GDX Gold Miners
We're seeing more weakness in miners this morning, and even a retest of Friday's support level, which I also covered over the weekend.
I think the fabulously overbought gold miners can snap back even harder... but this morning we're seeing another shakeout. This isn't a trade for the faint of heart.
Technically the $GDX gold miners is a complicated trade, with many moving parts, and would require an entire dedicated blog, to even begin to scratch the surface... perhaps some other day.
In the meantime you can do your own due diligence, by charting the most heavily weighted miners in the $GDX, and adding names like $NEM to your radar.
Take Care, AA
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