The stock market rally that started in March appears to have ended October 21–with approximately a 50% return. Coincidentally, the same return was seen in the rally (from November 1929 to April 1930) after the October 1929 stock market crash.
So despite much better third quarter earnings than expected and a much stronger third quarter GNP, most markets ignored the news and closed lower in October.
Expect market volatility as we approach year end and use rallies during the next two months to sell. If for any reason the Dow Jones closes below 9,200, be aggressive in reducing your positions.
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