- October in NE: Colors, Red Sox, Tom Brady...Wait, what?
- September corrections usually bottom in October.
- Chip stocks are a great leading indicator...and they're rising.
- But so are the truckers...and they're falling.
October in New England: Colors, Red Sox, Tom Brady...Wait, what?
October. There’s nothing better than October in New England. It’s the same every year. The foliage turns beautiful with its fabulous colors...and we get to watch the Red Sox play in the MLB playoffs...and watch Tom Brady lead the Patriots into the meat of another winning season. Uhhhhhhhhhh...well at least the colors should be great again!!!
September corrections usually bottom in October.
As we’ve been saying (and showing) ad nauseam recently, October is also the month where the stock market tends to see a significant bottom...when it is followed by a rough September (like we just the one we just experienced). In other words, even though September can frequently be a rough month for the stock market, we usually need to see more downside follow-through before we seen an ultimate bottom. However, it is not out of the question that for the first time since 1986, the lows for a September swoon will actually come within that month...and not in October. So what will it take for the market to rally further current levels...and not make a lower-low like it usually does in October (in those years when September is weak)???
Well, the first thing we’re going to have to see is a new fiscal deal out of Washington DC. We’re hearing a lot of hope out of Speaker Pelosi and Secretary Mnuchin that a deal will get done, but we wonder if this chatter is merely something to drown-out all of the layoff announcements we’ve heard this week out of companies like Disney, Royal Dutch, Continental, Goldman Sachs ...