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There was plenty of drama to end things last week and it carried through the weekend as well as the early stages today. It all mostly stemmed from Trump and his penchant for the theatrical, with the latest being stirring the pot with China again. The timing seems uncanny as it comes right after his bid for the Nobel peace prize ended in defeat.

In any case, here’s a summary of what we’re dealing with from Friday and the weekend ahead of European trading later.

France unveils new government despite political turmoilSebastien Lecornu was reinstated as French prime minister, just four days after resigning. He has also announced a new cabinet and must now present a 2026 draft budget before the deadline on Tuesday. That will give parliament the required 70 days to scrutinise the plan before year-end comes along. Don’t hold your breath though. As the saying goes, “insanity is doing the same thing over and over again and expecting different results”. 🤪

Japan political fracture finds no solution yetThe Komeito party’s decision to leave the ruling coalition is still sending shockwaves in the Japanese political circles. And that is frustrating Sanae Takaichi in her bid to become the next prime minister. The lack of solutions to resolve the situation is still making for a bout of political uncertainty, preventing much clarity on how things will shape up next. Pain. 😖

China defends its position to impose rare earth export controlsThis is Beijing’s ace card and they are not shying away from using it once again in what was supposed to be the run up towards a meeting between Xi and Trump. All of the trade progress is now in jeopardy as both sides are still fighting fire with fire rather than actually striking any meaningful compromises. As mentioned before, the trade conflict is merely paused or put on ice rather than being resolved since April. And the latest developments here reaffirm that as China will not just sit back and let Trump push their buttons. ❌

Trump threatens tariffs but another TACO in the making?He threatened fresh tariffs against China on Friday but there was some scope for optimism as the deadline given was for 1 November. Trump then said that there is still an “eternity” before the deadline hits, which suggests room for tensions to die down and both sides to find some agreement to press pause on the trade conflict again. While both sides do not want things to escalate further, it doesn’t mean we’re closer to an actual trade deal and for things to get better. Trump’s latest tweet here is also helping to lift the market mood a little as we look to the day ahead at least:

“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! President DJT”

Sure, it’s passive aggressive. However, that at least beats being all out aggressive I guess. And it does offer the potential for pulling back of his threats, at least that’s how markets are reading the subtext at the moment.

As such, risk trades are bouncing back with the dollar having to cancel out some of the price movements on Friday. AUD/USD is up 0.8% to 0.6523 with S&P 500 futures up 1.3% after the steep decline on Friday last week. 📈

This article was written by Justin Low at investinglive.com.

Silver price (XAG/USD) extends its winning streak for the fourth successive session, reaching its all-time high of $51.69 during the Asian hours on Monday. The non-interest-bearing Silver receives support from the increased likelihood of the US Federal Reserve (Fed) further rate cuts by year-end.

The GBP/USD pair gains some positive traction for the second consecutive day on Monday as dovish Federal Reserve (Fed) bets, and the risk-on impulse keep the safe-haven US Dollar (USD) depressed.

The EUR/USD pair posts modest losses near 1.1620 during the early European session on Monday. Markets hope for a compromise in the United States (US)-China trade war, which supports the US Dollar (USD) against the Euro (EUR).

European stocks are expected to open mostly higher Monday as markets keep a close eye on a new trade dispute between the U.S. and China.

A weaker crude price environment is expected to put the industry’s generous shareholder payouts at serious risk over the coming months.

EUR/JPY recovers its losses registered in the previous session, trading around 176.50 during the Asian hours on Monday. The currency cross appreciates as the Japanese Yen (JPY) struggles amid dampening safe-haven demand, driven by easing US-China trade tensions.

Are We Near a Market Correction?

Five Stocks Showing Signs of Weakness After the October 10 Sell-Off

After a volatile end to last week, many traders are wondering whether the market is setting up for a correction. Futures are trading higher today due to the holiday closure, but remember—green futures on a quiet day don’t always mean the worst is behind us.

Friday’s trading session (October 10) was heavily impacted by renewed concerns over trade tensions after a tweet from former President Trump hinted at possible new tariffs on China. The reaction was immediate: stocks sold off sharply, volatility spiked, and even the crypto market felt the heat.

Rather than trying to short the entire market, it can be smarter to identify which individual stocks look the weakest. If the selling pressure continues this week, these are often the first to drop again. Here are five that stand out.

Understanding the Basics

Before diving into the list, let’s decode some of the terms traders use to spot potential market weakness:

1. Relative Volume

This measures how much trading activity there was in the options market compared to the average of the past 90 days.

• A relative volume of 3.3 means option trading was 3.3 times higher than normal.

• High relative volume tells us that traders are paying attention—often because they expect a big move.

2. Net Delta

Net delta in this context shows whether more traders were buying calls (bullish bets) or puts (bearish bets).

• A negative net delta means put options dominated, signaling bearish sentiment.

• The bigger the negative number, the stronger the bearish bias in options positioning.

3. Implied Volatility (IV) and IV Rank

• Implied volatility (IV) represents the market’s expectation for how much a stock will move in the future.

• IV Rank compares the current IV to its range over the past year.

  • A high IV rank (above 80%) means traders are paying up for protection, often due to fear of bigger price swings.

  • Rising IV during a sell-off is another warning sign of stress.

5 Stocks That Could See More Downside

These names showed unusually heavy bearish activity on October 10. If the market continues to weaken this week, they may be among those leading the next leg lower. Traders should use this list as research and decision support—not direct trading signals. Always do your own chart analysis and wait for clear entry setups, possibly after a retracement upward.

1. PayPal Holdings (PYPL)

• Relative Volume: 3.3

• Net Delta: -1.0 million (bearish)

• IV Rank: 98%

• Price Change (Oct 10): -7.8%

PayPal saw more than triple its usual option activity, with most of that flow being put buying, not call buying. That means traders were positioning for more downside or protecting against it. With an IV rank near 100%, the options market is clearly pricing in turbulence.

Even though the company doesn’t report earnings until January, the sharp drop suggests investors are losing confidence in near-term growth prospects. If overall market sentiment worsens, PayPal could remain under pressure.

2. Advanced Micro Devices (AMD)

• Relative Volume: 2.6

• Net Delta: -190,000 (bearish)

• IV Rank: 98%

• Price Change: -7.7%

AMD had one of the steepest declines among large-cap tech names on Friday. Traders aggressively bought puts, sending implied volatility to near the top of its yearly range. When both price and volatility rise in opposite directions (price down, volatility up), it’s often a sign of panic hedging—suggesting traders expect more downside.

The key thing for traders to remember: stocks like AMD often bounce briefly after such sharp sell-offs. If you’re considering a short, waiting for a retracement toward resistance can improve your entry.

3. Qualcomm (QCOM)

• Relative Volume: 2.6

• Net Delta: -201,000 (bearish)

• IV Rank: 89%

• Price Change: -7.3%

Qualcomm’s options activity also spiked, and volatility jumped more than 16% in a single day. This points to renewed fear in the semiconductor space.

It’s worth noting that Qualcomm tends to track broader chip sentiment, which has been shaky since the tariff headlines. If markets resume selling, QCOM could retest or even break last week’s lows.

4. Corning (GLW)

• Relative Volume: 7.4 (highest in list)

• Net Delta: -112,000 (bearish)

• IV Rank: 98%

• Price Change: -4.8%

Corning showed the largest spike in relative option volume of any name on the list—over seven times its average. This kind of surge often happens when institutions rush to hedge their exposure ahead of potential bad news.

While the stock’s decline wasn’t as sharp as AMD or PayPal, the combination of extreme option volume and elevated volatility suggests traders are preparing for more weakness ahead of earnings later this month.

5. Broadcom (AVGO)

• Relative Volume: 2.0

• Net Delta: -623,000 (bearish)

• IV Rank: 75%

• Price Change: -5.9%

Broadcom’s options were heavily skewed toward bearish positions, with traders paying up for protection. The company has an event scheduled for October 14, and it’s common for volatility to rise ahead of such dates.

Given the large price drop and continued caution in semiconductor stocks, AVGO could struggle to recover quickly. However, traders should wait for Tuesday’s session to confirm whether sellers remain in control.

What Traders Should Do Next

These five stocks aren’t guaranteed shorts right now—but they are the ones to watch closely if the market resumes its decline.

Futures are pointing higher today, which could trigger some early-week buying. Patience is key: if the broader indices start showing weakness again, the five names above could offer high-probability setups for traders who favor short-side opportunities.

For now, this is research and education, not financial advice. You should always verify with your own chart analysis, confirm key resistance levels, and decide on your entry and stop-loss according to your own trading plan.

So, if you are looking to short… (at your own risk only)… then…

Friday’s action showed us which stocks investors were most eager to hedge or bet against. PayPal, AMD, Qualcomm, Corning, and Broadcom all displayed a clear pattern of heavy option volume, negative sentiment, and elevated volatility—a combination that often signals ongoing weakness if the market turns lower again.

Keep an eye on these names this week, or put them on your analysis radar and have a go. Whether you’re looking for short opportunities or simply learning how to interpret market sentiment, understanding option flow and volatility can be one of the most powerful tools in your trading journey. You must do your own research, we never give investment and trading advice. Visit investingLive.com, formerly ForexLive.com, for additional opinions.

This article was written by Itai Levitan at investinglive.com.