Is October going to be as bad as feared ?????

Fear has gripped traders in a big way......

October is being positioned as the month to be afraid of....

Let us look objectively @ this "October" phenomenon......

S&P 500 peaked in 3rd week of September @ 1080.15.......

On October 2nd we closed @ 1025.21..a drop of 54.94 points or a drop of 5.09%....

A 5% retracement is actually healthy and have discounted sluggishness in economic growth already....

Friday's volume was less than previous 2 days...while the economic report was shocking......

Smart money was actually buying on panic selling...that is why we closed 5.26 S&P points above low of the day.....

When market do not close @ low of the day on Bad news...pay attention.....

RSI in S&P 500 closed @ 44.05 which is few points above July low.....

I have a feeling that we build from here and eventually will work HIGHER....

Those who have numbers like Dow 9,000 should pay MORE attention to RSI of last 4 months to get a "better feel of the market"

I strongly believe that once we move away from current levels..we are going much much HIGHER...so this could be a "buying opportunity "

I firmly believe that we are very close to "bottom"

This market has shown clear cut winners like AAPL,GS,GOOG,ISRG...IF you had ridden some or all of them..congratulations..you are exceptional in this market.....

World economies are showing GROWTH & stock markets are reflecting this growth in INDIA which has sprung to new 52 wk HIGH......

SO... do not be taken by media in believing that US growth is questionable ...GDP is expected to show GROWTH in Q3 & strong growth in Q4...

Make sure you have your OWN game plan which ensures your OWN comfort level.No matter how you position your portfolio make sure you are DIVERSIFIED in many sectors.

BLOG does NOT give buy or sell.

Saleem