Saxo Market Call Markets charge back higher as we continue to cast a jaundiced eye.
12 snips
Oct 21, 2025 The discussion kicks off with a strong US equity market but raises concerns about the sustainability of this rally. Topics include short squeezes and hedge fund dynamics, along with the risks of margin debt and leveraged ETFs. The chat continues with insights on crypto trends as potential signals of market risk. John dives into the implications of US-China trade talks, touching upon rare earths deals and geopolitical tensions. Also highlighted are Amazon's resilience amid service failures and contrasting performances of tech giants NVIDIA and Apple.
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Bull Market Lacks Breadth And Quality
- The equity rally looks strong but is poor quality, driven by short squeezes and crowded flows rather than fundamentals.
- Rising margin debt and levered ETF participation echo late‑2021 bubble dynamics and increase downside risk.
Diverging Liquidity Signals Raise Flags
- Liquidity signals diverge: cryptocurrencies and gold showed weakness despite equity strength, hinting at fragility.
- Weakness in Bitcoin and precious metals suggests the equity advance may lack broad liquidity support.
BNP Shock From Sudan‑Related Allegations
- John recounts BNP Paribas plunging after allegations tied to Sudan and potential large damages claims.
- He notes hyperbolic damage estimates versus realistic outcomes and the need for the story to play out.
