After a breathtaking September where the markets went up almost 10% for month what could we possibly be in store for in October and for that matter the rest of the year? Two words, extreme volatility! The potential volatility begins this week with some key economic reports hitting the market and with the ever so closely watched employment numbers coming out before the open on Friday. Any surprises there would most certainly jolt the markets in either direction. Then of course we begin to see corporate America report their 3rd quarter earnings results and one might ask with the incredible run the market has been on is it possible that companies can beat earnings expectations in order for this rally to continue? That my friends is the $1 million dollar question and my expectations is this reporting season will be another catalyst for significant volatility in the markets. Last but not least we are a month away from the highly anticipated mid-term elections and one does not need to be a rocket scientist to figure out that this event indeed will ratchet up the volatility as well.
Bottom line, in my humble opinion we are heading into a period that will be a traders dream. I think market technicians are going to have a field day navigating the markets and if you are a long term investor you must have the mental and emotional strength to endure the upcoming period of volatility.
Have a great week 🙂