- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Posted November 7, 2025 at 10:14 am
1/ Estimating Potential Correction Zones
2/ MAG7 Continue Trading on Upper Ranges
3/ Rotation towards International Equities Continue Amidst Lofty US Valuations
Investopedia is partnering with CMT Association on this newsletter. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.
Estimating Potential Correction Zones
The bull market continues and usually retrace 10-20% of its impulse move. In the case of the Nasdaq100 or the QQQ which has surged from its April 420 lows to the current 640 highs, we expect a minor supportive bounce at 580 to coincide with a lot of dip buyers. This is also the 100 day moving average. Shallow pullback zones suggest lack of strong selling pressure negating bearish discussions of a popping of an AI bubble. Instead the market needs corrections to reset overheated technical conditions to keep the bull market running healthy.
MAG7 Continue Trading on Upper Ranges
Although headlines discuss the expensive valuations of the markets, the sentiment doesn’t show a really weak markets and the continuous wall of worry can only be validated if we take a deeper correction at least to the 100 day moving averages similar to July and August 2024 or during the deeper selloffs in April 2025. At most, we would expect corrections to find supportive bounces especially at 10% drawdowns from current prices. Thus, shallow and muted corrections are unlikely to trigger a strong panic selling wave given the advances made.
Rotation towards International Equities Continue Amidst Lofty US Valuations
The rotation toward international equities is accelerating even in the latter end of 2025, driven by discounted valuations abroad and stretched pricing in U.S. mega-cap growth stocks rotating to international equities as shown on the continued strength of IEUR which is a Europe ETF. There has been no conclusive evidence of real panic selling but a rotation.
—
Originally posted 7th November 2025
Investopedia.com: The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment or strategy. This information is intended for US residents only.
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Investopedia and is being posted with its permission. The views expressed in this material are solely those of the author and/or Investopedia and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Join The Conversation
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!