- In Trade Chatter
- Last Updated: 31 October 2012
- By LA Little
So where were we? Uh, it's been four days since we traded. I think I mostly forgot what was going on ... amnesia. Maybe a good thing!
There are times when the market seems to have amnesia - from day-to-day and then there are other times where it remembers everything; every sorted detail. Right now it remembers all the problems that it had forgotten about most of the year and has been selling down as a result. Now we get the hurricane, the shut down of the exchanges, an Apple shakeup, more stimulus in the Far East, European news (as if that doesn't happen everyday), an election less than a week away - oh my - wait there's even more.
Sorry, I won't go there. Too much stuff to digest. Let's just concentrate on the charts and let them tell us what is happening and that is that these markets are saying they want to bounce. How much remains to be seen as well as "if" they will bounce at all. If the don't, that's a bigger problem. If they do, then we have to monitor how they bounce to decide what's next. Longer term - a few weeks out, the picture has the potential to become problematic but that's a story for another day. Let's see if we can get the bounce first.
The effects of the storm will have the usual effects. Restaurants, travel and insurance all typically get hit, lumber stores find new business, etc. I don't try to play these sorts of aberrations but they are there and will persist for a while. Most everything else will be about more earnings and the elections and trying to figure out what to do next which probably results in some sort of careful, "I don't want to move too fast to buy" reaction. We'll see if that blows over quickly or persists. All in all, its amnesia ... just what they heck did I plan to do and if I can remember that .... do I really want to do it now?