Nikkei bounced back on monday and advanced 2,2% after the downturn on friday. Topix rose 1,7% in a light trade with 2,32 billion shares changing hands. The European stocks rose to it`s five year highs today while the dollar is still under pressure. Gold is trading at $1,353,10 an ounce.
The S&P500 is up over 23% YTD. It`s time for Halloween this week, but all the ATH (all time high) are making many people scared, but that is not because of the Halloween. It is simply because the market is overbought.
Take a look at the S&P500 shart below. How many ATH can you count in that chart? You see? The world is going up and forward. Will this megatrend stop? If USA is like Japan twenty years ago, it will stop. They did never come back to it`s top. Take a look at the chart.
The next months are the favorite months for many investors. If you look back over the past 60 years, the Wall Street results have been dominated by this very productive season.
You have probably heard the word October effec, the year-end effect or the January effect. Historically, November has been the second-best month of the year for the S&P500 and the third best for the Dow since 1950. It has also been the start of the most bullish months of the year, which extend to April.
You have also heard the word: “Sell in may and go away.” But sometimes it isn`t like that. Sometimes we see things are not going the way it should. You can rely on this as the forth and crucial element of the Quadruple Witching Season. Like the one that is sitting on top of other catalysts like the tide lifting all boats, but don`t forget stop loss, simply because what goes up, must come down.
50% of the companies on S&P500 have reportet their Q3 results and some of them have exceeded the investors expectations which made the rally we have seen so far in October. Today it is headed for Apple, and wednesday it is time for Facebook earnings. I look forward to both of them.
Pending Home Sales at 10:00am. (Forecast: 0,5%. Previous: -1,6%).
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