Volatility and Risk Increases – Again
We seem to be still recovering from the inordinate March drawdown which saw the S&P 500 move from 3,390 in February to a low of 2,220 in March. A very dramatic move in a short period of time.
Sweet October?
It was a good 3rd quarter for the markets with only 1 down month- September. Now, October has started on the right path, as our main indicator - the Bullish Percent for the NYSE (BPNYSE) - which measures the percentage of stocks that trade on the NYSE that are on a Point & Figure buy signal reversed up from 46% to 54%.
Volatility Returns – Simply Rotation?
We entered the month of September with an over-bought US stock market and it did not take long for a down movement to take hold in the US markets to reflect that state with the technology heavy Nasdaq 100 stocks leading the way.
Back to New Highs!
Back in January and February this year we were making new all- time highs in the most diversified stock market – S&P 500. We then had a set- back…. which moved into a recession
Can we Continue to Move Ahead?
Although the news is far from ideal on a number of fronts, when we look at the largest and strongest stock market around the world, the S&P 500 in the US, we see a breakout to a new high but not the all time high reached in February of this year at around 3,375.
Can the Banks lead us Higher?
One of the lagging sectors in this massive stock market recovery has been the major banks – both in Canada and elsewhere. One could say, you will not have a strong economy without the bank sector contributing to the growth.
Too Far Too Fast??
Volatility certainly seems to be the name of the game lately. The stock markets went down very fast and bounced back (somewhat) very fast. The Leading Nasdaq Composite made it back to where it started the New Year – the start of the New Decade. Remember the Roaring 20’s?
Is There a Disconnect?
WOW! Markets go down, markets go up. Does anyone really know what is going to happen next. In the end many say it always goes higher but there are some exceptions to that rule just like all rules.
Risk Levels Remain Elevated
Last week we experienced a significant drop in the US stock markets from all-time highs. A sudden drop of this magnitude from all-time highs does not happen very often so it does make sense to put it into some context to see if it is simply another buying opportunity that is occurring or is it something different.
Will This Action lead to Another Opportunity?
It certainly has been a good upward move in the North American markets since we posted our last blog reflecting the positive movement in October.
The Breakout
Last week we saw the US S&P 500 definitively breakout to the upside despite seeing some questionable earnings from a number of industrial companies during earnings season.
October Blues??
October does have a history when it comes to the stock market and it’s a history one would like to avoid. Just last year, the US S&P 500 had a pullback in October after reaching new highs in September.