Articles  The Book
Stock Investing 101 logo

"Why U.S. Bond Yields May Continue Lower: Wall Street May Have It Wrong about Interest Rates" | Main | "Time to Buy Puts on the S&P 500 (SPY) for a Greater Decline Ahead?"

Posted on October 31, 2014 -
Read Reizner's Way to Wealth
By John Reizner |

Join My Mailing List!

In my chilling October 12, 2014 post on this site, "Is a Long Term Top in Place in the Stock Market," I related that the market had plunged on October 10 through its 200 day and 40 week moving averages on a daily and weekly basis respectively, Closing for the week below the 40 week moving average was a potential intermediate sell signal for the market. The S&P 500 plunged as low as 1820.66 on October 15th intraday.
The cascading stock market generated apparitions of Halloween goblins and witches on Wall Street and The New York Stock Exchange was thoroughly spooked by the uneasy market. The ghostly beings tried during the month of Halloween to put their hex on the long bull market that began in March 2009, but they did not succeed in terminating the resilient bull market that we investors have experienced for the past six years. 
The undead's efforts to stymie the market gained great traction during the month of October as the S&P 500 Index closed below the very important 10 month moving average on an intra-day basis during the month, before reversing and moving quickly upward to retrace its steps. Closing below this fearsome 10 month moving average on an end of month basis has been seen in the past to cause bull markets to shudder and end fitfully. Such an event occured before both the dot-com stock market meltdown at the turn of the century and also before the financial crisis from which we may be only emerging economically today.
Investors celebrated mightily on Halloween day as the S&P 500 rose 23.40 points and closed at 2018.05. The Dow Jones Industrial Average rose 195 points for the day to close at 17,390 on October 31st. Happily, both averages closed above the ten month simple moving average for the monthly bar of October and a potential long term sell signal was averted. Investors were cheered as they rode to their homes to trick or treat without fear of scary skeletons in the dark or having their candy stolen.
Stock market cheerleaders are again singing "Happy Days are Here Again" and investors (including this investor) may now all rest calmly knowing that we are all good at least until the next Fed meeting. Thank heaven I got back in near the bottom! 


This blog contains the opinions and ideas of the respective authors of the blog's various entries and is designed to provide a forum for general discussion of the subject matter covered. Each of John Reizner (together with this website, "Reizner") and the participants in this blog (the "Participants") may or may not have current positions in the investments mentioned in this blog, and each of Reizner and the Participants may from time to time make investments in a manner that is not described here. Past investment performance is no guarantee or predication of future results and any investments made, based on the opinions and ideas contained in this blog, may or may not be successful. The strategies (if any) contained herein may not be suitable for every investor or situation, and neither Reizner nor any of the Participants is engaged in, or may be construed to be, rendering legal, accounting, investment advisory or other professional services to the reader or any other person. Readers should consult their own advisers for advice particular to their individual circumstances. Reizner is not, and may not be construed to be, responsible for the content of any entries made by the Participants. By viewing this blog, you expressly consent to the terms of this site's Terms of Use Agreement.



So you're bullish on the market continuing to improve? Should I go long on US equities?

Add new comment