Thank goodness last month is over. The S&P 500 lost 4.7% in August its worst drubbing in the month of August since 2001, however this did occur on extremely light volume. That said, a new month and new beginnings are upon us. With 4 months remaining in the year and uncertainty abound couple that with one of the most important mid-term elections our country has faced in recent history, we should expect significant volatility for the rest of the year.
The market however seemingly is setting up for an upward trajectory. Yes a bullish call from this perma-bull. Let’s take a look – The technicals look poor, the fundamentals are fragile, the sentiment is sour with pessimism peaking and the headlines are horrific. To me this a recipe that should favor the bulls and as counter-intuitive as it may seem this type of environment historically has been the perfect set-up for a rally, throw the mid-term elections into the mix and it potentially could become a barn burner. Stay tuned and good luck to all.