Market Update 1st October 2010
September has ended with the best monthly gains since 1992, however the Dow and the S&P made a bearish intra-day reversal.
The S&P is struggling to break above 1,150 and the Dow is struggling at 10,900.
September is typically the worst month of the year but this year has proven to be the best percentage gain since 1992, which has investors fearing- will October follow or will it reverse?
A couple of things that could trigger a selloff in the market is a rise in Capital Gains Tax, or if quantative easing is delayed meaning that , the FED delays printing any more money or if Europe’s sovereign debt problems hit the headlines again and causes renewed fears as we know the problems are still there and very real.
The VIX which is the volatility index spiked above 24 before pulling back it’s the first time we’ve seen that in a while when there is fear in the markets this is when we see major moves in the VIX.
And then we have Gold, which broke above 1,315 to a new record high, as the falling US dollar is under pressure.
When markets are at cross roads we do nothing as traders, until we get a clear sign of either a bullish breakout or a bearish downturn, either way there will be some great profits to make if we are patient.
