Stock market investors seem to be as nervous as ever. Most simply do not have conviction as to which way the economy is heading and not sure about the outcome of any number of macro factors; the trade war, Brexit, Middle East stability, among many others. The market averages are still near highs, but it is easy to see the nervousness in daily trading. Volumes are down, some stocks are trading thin i.e., they make outsized moves on little trading. Also, there seems to be a constant and rapid rotation among sectors and investment styles for market leadership.
The Bull has been watching money flows, but they are almost as confused as the market at large. So, they are not offering any incite either. Eventually, greater clarity will come. Current conditions are still mostly good. It’s the future that investors are worried about. The Lonely Bull and his partners believe that outcomes will be more positive than not. After all, good businesses have great ability to adjust, adapt, and find a way.
October has historically been a volatile month. Once earnings for the third quarter are reported over the next few weeks and managements have the opportunity to talk to their owners (shareholders), traders can act upon information and not just conjecture. Earnings are now beginning to be reported. It is much too early to draw many conclusions, but the initial results are encouraging. Stay steady, my friends.
The Lonely Bull