Oct 10th 2014 – Worst week for S&P 500, Nasdaq since May 2012


Market View:

Take a look at the system at work in the above picture.  If that doesn’t impress you nothing will!  This is the ETF we trade in our basic service, giving signals on this one ETF, the QLD.

I’m certainly not getting cocky, as nothing will humble you like the stock market, but I am absolutely delighted to see this market fall as hard as it has while I sit in cash waiting to swoop.  Just where this bottom is nobody knows.  This was a huge sell off towards the close.  The bulls have clearly ran for the hills.

We are going to need another sideways plateau before we can go higher, which I suspect we will get early next week. Just as it was in August, these sell offs create a tremendous opportunity to get back in when everyone is fearful. Let it fall some more I say!

Market News:

U.S. stocks fell sharply on Friday, with benchmark indexes falling for a third week in a row, as computer-chip manufacturers led the losses after Microchip Technology lowered its sales outlook.

Equities fell further after Standard & Poor’s downgraded its outlook for France to negative from stable.

Ahead of the open, the Labor Department reported U.S. import prices fell in September for a third month as the price of petroleum prices fell and a stronger dollar made it cheaper for Americans to purchase European goods.

After rising as much as 98 points in the early going, the Dow Jones Industrial Average dropped 115.15 points, or 0.7 percent, to 16,544.10.

Down 3.1 percent on the week, and up 3.1 percent for the year, the S&P 500 dropped 22.08 points, or 1.2 percent, to 1,906.13, with technology hardest hit and utilities faring best among its 10 major sectors.

The Nasdaq declined 102.10 points, or 2.3 percent, to 4,276.24, leaving it off 2.3 percent on the week and up 2.4 percent on the year.

News Sources:  CNN Money & CNBC

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