Retest!

The U.S. stock market is going through a retest of its August lows. Retests of lows for markets and individual stocks are common. It is part of a classical pattern in the way auction markets, like ours, work. This pattern is following the precedence that corrections start in August or September, but then conclude in October. September is historically the worst month of the trading year.

So far, this correction has been mild. The Bull and his partners believe that will still be the case. We noted recently that the internal technicals in the market have been deteriorating and warned that volatility would likely be increasing. Well, yes it has; expect more of it. If the precedence cited is correct, then the stock market should emerge from this phase in October. That is not very far off. Stay steady, my friends.

The Lonely Bull