"September....historically the worst month for stocks on average.... closed with simply stellar gains for the month and quarter. The S&P 500 rose 8.9% for the month (the Second best September on record) and the MSCI World gained 9.4%.... the best September by a huge margin since the index began in 1969. For the quarter, the S&P 500 gained 11.3% and the MSCI World jumped 13.8%. Encouragingly, strong third quarters are frequently followed by strong fourth quarters. We believe this historical precedent combined with positive underlying fundamentals provides a nice backdrop for stocks for the balance of 2010."Investment Policy Committee, Fisher Investments - "This Week--At a Glance" October 1, 2010.
September was huge. Question, what usually follows a big move?Consolidation - sideways channel - squeezes followed by quick pops.It's not a rule. And if we're lucky the market will just keep moving -- up or down it doesn't matter.Personally, I believe the market is still in a slingshot from the low on March 6, 2009. I also believe that we will breakout past the 2007, all time high of 1586.75. I don't know when, but I know we will.
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