It is official. The market is in crazy land. There is no way out now until the selling is exhausted, and that will be when the panic to sell is exhausted. On a short term basis, this could get uglier.
- Wow, what a week/month it has been so far. Students of market history know that October has a reputation for increased volatility. And cutting to the chase, this October is certainly living up to that reputation as we’ve seen wild swings in the major indices each and every day this month.
Maybe it is the lessening light in October that makes market players crazy, or, perhaps, the increasing cold is what does them in. Then again, maybe it is clearer sense that the year is ending, which precipitates fear that the money made thus far could be lost. Then again, global growth and Ebola could issues.
- It is interesting to note that Monday and Tuesday saw declines as traders began to fret about global growth and the potential economic impact of an Ebola outbreak.
Global growth and Ebola, along with the reality of the market technicals and the belief that a correction has to happen conjoined with “what will the Fed do and when” soap opera trump earnings, at this point, so, all that can be done is to wait it out.
If earnings come in decent or better than decent, the market will survive or flourish, depending on which happens. If they fail to do either, and they are not likely to, the fundamental fear about global growth in tandem with all the other fears will drive the market toward a 10% or so decline.
As to Ebola, well, that is a wild card of the most dangerous sort. If that horrid virus gets out of hand in Europe and the US where education and good medicine are more prevalent than ignorance and ancient ways then we have a problem, a problem of unpredictable proportions. Let me leave it at that.
As to today in the market … I have not a clue.
Trade in the day; invest in your life …
