To The Moon

📈 September Rally, October Crash? Is This Bull Still Young or Getting Old?

🚀 Introduction – Defying Expectations

Heading into September, many investors braced for a pullback. After all, history isn’t kind: September and October are notorious for volatility, with October often called the “jinx month” of markets.

Yet once again, U.S. equities surprised to the upside. The S&P 500 ($SPX) climbed through September, extending the 2025 rally. Now the real question is: will October continue the bull charge, or are we on the edge of correction territory?

---

1️⃣ A Look at the Numbers

SPX YTD performance: +13.25% (vs. +20% by this time last year).

September 2025: Another positive month, despite widespread caution.

October history: Red in 10 of the past 15 years, making it statistically the weakest month.

💡 So far in 2025, the bull has proven resilient — but momentum is slowing compared to 2024’s blistering pace.

---

2️⃣ Why Bulls Say the Rally Still Has Legs

Fed policy shift: Expectations of continued rate cuts into year-end keep liquidity supportive.

AI & tech tailwinds: $NVDA, $AAPL, $TSLA continue to capture flows on strong fundamentals.

Earnings momentum: Corporate results have so far come in better than feared, helping justify valuations.

Global growth: Signs of resilience in U.S. consumer spending and improving Europe data provide a macro floor.

For bulls, October is just another stepping stone in a young, liquidity-driven cycle.

---

3️⃣ Why Bears Warn of a Break

Overextended valuations: The S&P trades near 20x forward earnings, above historical averages.

Seasonal risk: October’s track record of pullbacks (including 1987, 2008, 2018) is hard to ignore.

Slowing momentum: YTD returns are strong but already well below last year’s pace, raising doubts about sustainability.

Geopolitical overhangs: Election uncertainty, trade tensions, and Middle East risks could trigger volatility.

💡 Bears argue the current rally feels more fragile than durable.

---

4️⃣ Reflection – How I’m Looking at It

Personally, I see this October as a crossroads month.

On one hand, the Fed’s dovish tone and AI-led enthusiasm remind me of 1999 — when optimism carried markets higher despite stretched valuations.

On the other, the seasonal weakness of October plus rising concentration risk in the Magnificent 7 feel like flashing caution signals.

In my own positioning, I’ve leaned slightly defensive: trimming high-flyers, holding some cash, but not abandoning exposure to quality growth. To me, the risk is not whether the bull dies now, but whether volatility shakes out weak hands before year-end.

---

5️⃣ Key Stocks to Watch in October

$TSLA (Tesla): Up 30% in September, Q3 deliveries will be a major driver.

$AAPL (Apple): iPhone cycle and AI ecosystem integration under the microscope.

$NVDA (Nvidia): Still the AI king — any sign of slowing demand will rattle sentiment.

$BABA (Alibaba): China exposure remains a wild card; October policy moves could matter.

These names will not only move individually but also set the tone for broader market sentiment.

---

🏁 Conclusion – Young Bull or Aging Run?

October is shaping up to be a make-or-break month. The September rally raised hopes, but history warns us that October often delivers surprises.

💡 Key Takeaways:

1. The S&P 500 is still in a healthy uptrend, but at stretched valuations.

2. Fed liquidity and AI enthusiasm argue for continuation, while seasonal weakness argues for caution.

3. Investor positioning may decide October — if everyone fears a crash, sometimes the market climbs higher instead.

@TigerWire  @TigerEvents  @Daily_Discussion  @Tiger_comments  @TigerStars