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| Stocks: A Quick Update - Oct. 28, 2004 |
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Summary
It would appear that "scary October," or at least the scariest part of this October, ended on Monday. But bulls definitely would do well to wait before breaking out the Dom Perignon!
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Thanks to a market that moved to a heavy short-term oversold condition, coupled with some unusual activity by the Treasury whereby it injected a significant amount of liquidity into the financial system (just before the election), stocks had a very nice two-day liftoff.
However, I don't see where much I've been writing about over the last two or three weeks has changed. Except, of course, for the higher stock prices of the last couple days -- immediately in front of the election (hint, hint!).
Perhaps the scariest part of October vis a vis stocks will turn out to have been how terribly lackluster the month was -- immediately in front of the election. (Hmmmmmm...there's that election thing again.) And heck, considering the degree to which Wall Street was hyping the market as the year began, a great deal of it based on the "Presidential election cycle," the year so far has been a spectacular bummer!
Which is the critical element at the moment: to keep in proper perspective the difference between a couple strong days in the equity market, versus almost 10 months that have been an exceptional disappointment to the bullish camp -- no matter how it is and has been spun by the CNBC crowd.
There's more tough sledding ahead. For more than one reason, next Tuesday might become the logical demarcation for the next round!
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