Monday, October 6, 2014

The Weekly Market Outlook - Recovering or In Need of More Tests?

*****Last week's volatility may not have surprised my readers and listeners but if it surprised you, welcome to my outlook where I  look to the past to see into the future, not with a crystal ball but with an eye to patterns and possibilities they may produce.

Depending on our outlook, surprises can be pleasant or unpleasant but what we need to admit about them is that we did not prepare well enough for the possibility.

Although we can expect some recovery, we also have to remember that the earnings reports are about to get into full swing. Along with reports come expectations, surprises and sell-offs. Selling may increase due to the end of the year profit taking  and buying will become more active due to positioning into the next year. Therefore swings in stocks may become wider. So, allowing  for wider swings both ways and preparing for the possibility, we may avoid the unpleasant task of last minute decisions or big surprises.

Here is what I see for this week and perhaps beyond:

Happy Trading, Living and Dancing

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