Crossroads
The Stock Market just DUMPED! Here's why, and what I'm doing!
10/10/2025, 9:45:02 PM
Economic Summary
- A sudden drop in equities was largely driven by President Donald Trump’s comments about tougher China tariffs, raising short-term trade-war risk and potential retaliatory measures.
- Despite the intraday sell-off (Nasdaq ~-3.5%, S&P 500 ~-2.7%), year-to-date performance remains strong: S&P up ~11.5% and Nasdaq up ~15.5%, implying pullbacks are occurring inside a broader bull market.
- Market internals show increased fear: the CNN Fear & Greed components and a rising put/call ratio reflect more hedging, while the CBOE VIX ticked to ~21.7 (a ~31% intraday change) but remains modest versus April’s spike.
- Technical readings: daily RSI fell sharply signaling short-term oversold conditions, while weekly RSI had been overbought—historically consistent with normal multi-week pullbacks within an ongoing bull market.
- Hedging activity was prominent: the inverse triple-levered NASDAQ ETF SQQQ rallied (~13% intraday) and related options were profitable, showing investors used leverage/derivatives to protect positions.
Bullish
- Markets remain materially up year-to-date, leaving room for rebounds.
- Tariff rhetoric could be quickly resolved and spark a sharp relief rally.
- VIX move is modest vs. April spike, historically signaling buyable dips.
Bearish
- Trade tensions after Trump’s Truth Social post could trigger retaliatory tariffs and prolonged market volatility.
- Concentration in high-beta, extended names increases downside risk if selling intensifies.
- Put/call ratio and Fear & Greed index moving toward fear suggest rising hedging and downside positioning.
Bullish tickers
AAPLNVDASQQQPYPLPLTRMCD
Bearish tickers
NVDAAAPLAVGOTSLAHOODPYPLPLTRBMRNHIMSS
NVDA
Bullish
Still part of the broader YTD market gains; could rebound if trade fears ease.
Bearish
Large-cap tech vulnerability to trade/tariff shocks and high-beta sell pressure; down ~5% in the pullback.
AAPL
Bullish
High-quality mega-cap that typically leads recoveries when macro headlines calm.
Bearish
Exposure to China-related supply chain and tariff headlines; fell ~3.5% on the day.
AVGO
Bullish
Strong enterprise positioning could rebound once trade uncertainty subsides.
Bearish
Broadcom dropped ~6% amid the broad tech selloff and trade concerns impacting semiconductor demand.
TSLA
Bullish
Still a widely held growth name that may recover strongly on dip-buying.
Bearish
High-beta stock vulnerable to broad market risk-off and liquidity-driven selling; down ~5%.
HOOD
Bullish
Long-term position for the speaker; potential covered-call income strategy during volatility.
Bearish
Robinhood experienced large intraday losses (near double digits), exposing volatility in retail/crypto-sensitive names.
SQQQ
Bullish
Effective short-term hedge—rose ~13% during the Nasdaq drop and produced profitable option moves.
Bearish
Not a long-term investment; triple-levered inverse ETF can lose value over time if held.
PYPL
Bullish
Speaker views PYPL as a potential buy on deeper weakness ahead of longer-term catalysts.
Bearish
PayPal slid ~8% on profit-taking and remains sensitive to macro and payments cycle uncertainty.
PLTR
Bullish
Candidate for additional accumulation at a discount if selling persists.
Bearish
Palantir can be volatile and underperform in broad risk-off periods, though it didn’t fall as much today.
BMRN
Bullish
Speaker continues adding to BMRN, viewing it as a buyable name on weakness.
Bearish
Biotech/SMID names like BioMarin (BMRN) are prone to larger swings in selloffs and profit-taking.
MCD
Bullish
McDonald's held up during the selloff, reflecting defensive breadth in consumer non-durables.
Bearish
Relatively defensive consumer names can still lag during broad market rotations.
HIMSS
Bullish
If this refers to HIMS-like names, speaker implied these were among volatile high-beta stocks to watch.
Bearish
Mentioned as a high-beta/volatile name that dropped significantly; ticker ambiguous in transcript.
People mentioned
CrossroadsDonald TrumpXi JinpingRoy