Now It Gets Interesting
We’re up another 2.4% on the S&P since my last post on Monday, and a total of 13.7% from the bottom on 10/4. Now we’re back near the top of the August and September trading range at 1225 on the S&P (but still off this years high of 1370, about 12% higher from here.)
Volume on this rally is still not great but there is very little else to complain about. (Actually, a lack of volume could indicate there’s still money on the sidelines.) We could easily go to 1250 before any kind of consolidation, although a little rest after a run of this magnitude usually extends the life of a major market move.
Q3 earnings reports really start to ramp next week and will control market mood. Although positive earnings expectations have increased this week I don’t think they’ve changed enough to create too much disappointment if earnings come in somewhat mixed.
What to do? Sell stocks/funds we’re concerned about into rallies, buy stocks/funds we have confidence in on pullbacks, and watch key support and resistance levels that might signal a change in direction.
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Now It Gets Interesting
October 14, 2011 Leave a comment
We’re up another 2.4% on the S&P since my last post on Monday, and a total of 13.7% from the bottom on 10/4. Now we’re back near the top of the August and September trading range at 1225 on the S&P (but still off this years high of 1370, about 12% higher from here.)
Volume on this rally is still not great but there is very little else to complain about. (Actually, a lack of volume could indicate there’s still money on the sidelines.) We could easily go to 1250 before any kind of consolidation, although a little rest after a run of this magnitude usually extends the life of a major market move.
Q3 earnings reports really start to ramp next week and will control market mood. Although positive earnings expectations have increased this week I don’t think they’ve changed enough to create too much disappointment if earnings come in somewhat mixed.
What to do? Sell stocks/funds we’re concerned about into rallies, buy stocks/funds we have confidence in on pullbacks, and watch key support and resistance levels that might signal a change in direction.
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Filed under Investment Management, Markets Commentary Tagged with market, stock