October is turning out to be far more “trick” than “treat” for equity bears.
At the midpoint of the month, things looked sensational. Stocks were breaking down left and right, and it seemed that we had finally encountered a sea-change in the market.
Since then, however, stocks have exploded higher with a gusto that I underestimated. I certainly expected a bounce, but nothing of this degree. Much worse, it seems that the cessation of QE (announced yesterday) has done nothing to slow the equity bulls down.
This kind of environment can really mess with one’s head. Let’s take a look at the past couple of days on the ES: (more…)