After a terrible month for the markets in August, I titled my September 1st (blog) “New month – New beginnings” and as I suspected, the sell-off in August was a little overdone. Little did I know. You typically don’t see records set for the month of September for historically September and October tend to be the two worst performing months of the year. For now I think  you can throw the historic data out of the window for we have not seen this type of environment for stocks since the 30’s. My feelings now are buyer beware. When we essentially see a straight line up one must expect pull backs to occur.  A few things that concern me with this enormous rally is that it’s happening for the most part without the bank and financial stocks participating, also the volumes have been light and the market breadth was weak. Again even those metrics may not matter much with what the markets have to digest over the upcoming 3rd quarter earnings reporting season and the ever approaching mid-terms.

Congratulations to all that have been long this market but please make sure you consider how far we have come in such a short period of time.

Best of luck.

~George