After the first three week we had in October, it was nice to see the great week that just occurred. It could be a sign if things to come. The election is in less than 72 hours and the race is tightening up. At this point it could go either way. I look forward for it all to be over.
.
As for the stock markets, I think the worse may be over. Unless we end up with a one political party control of Washington D.C. The Dow was up nearly 14% this week, while the NASDAQ gained 11% and the S&P 500 jumped 10% during the same period. I love weeks like this and these are the weeks that we need to see more of.
.
In this week we’ve seen that the financials are loosening their grip on their money. As well as the fact that we’re seeing the acquisitions of the smaller/troubled banks getting scooped up by the big dogs. PNC has taken control of the Ohio based National City Corp. This is what needs to be done if we ever want to see growth again in this country.
.
The Federal Reserve lowered the funds rate down to 1.00%. It hasn’t been this low since the summer of 2003. At this point they can’t lower it any more. so I would imagine that if anything they’ll leave it at this level for awhile. I mean what else are they going to do in this economic turmoil?
.
The volatility in the stock market has slowed down from what we have been seeing for the last few weeks. The VIX has come down quite a bit after hitting a high of around 90%. That’s good for stability, but bad for the day traders out there that were have a field day with the Ultashorts Powershares. Then again that why the VIX was up so much recently.
.
I’m looking forward to some great gains again in this coming week and plan to take profits where I can. I say that because like I said earlier, there is an election taken place this week.
Recent Comments