10-11-2014, 12:51 PM
My experience has been that September and October are usually weak market months. Usually but not always. I keep dry powder so that if the weakness does materialize, I can take advantage of it.
This month has been a doozy of a weak October. There are several telling indicators, in addition to what is in front of your face, the market averages. In no particular order:
The VIX (volatility index) measures market fear. It got over 20 yesterday, which is a meaningful reading, exceeded in the last 3 years only by the major panic of Aug-Sep 2011. http://bigcharts.marketwatch.com/advchar...e&state=11
The Fear and Greed index. It closed at 1 yesterday, on a range of 0 (extreme fear) to 100 (extreme greed), which is as fearful as you can get. http://money.cnn.com/data/fear-and-greed/
This month has been a doozy of a weak October. There are several telling indicators, in addition to what is in front of your face, the market averages. In no particular order:
The VIX (volatility index) measures market fear. It got over 20 yesterday, which is a meaningful reading, exceeded in the last 3 years only by the major panic of Aug-Sep 2011. http://bigcharts.marketwatch.com/advchar...e&state=11
The Fear and Greed index. It closed at 1 yesterday, on a range of 0 (extreme fear) to 100 (extreme greed), which is as fearful as you can get. http://money.cnn.com/data/fear-and-greed/