Stocks: The Hunt For Red October

October has gotten off to a wild start. In the first three trading days alone, stocks as measured by the S&P 500 Index managed to drop by more than -2.3%, then rally by more than +2.3% to end up virtually flat for the month so far. And one gets the suspicion that this might not mark the end of the volatile market swings in the weeks ahead. Given that this latest bout of volatility is taking place nearly six years into the third longest stock bull market in history at a time when the economy remains persistently sluggish and the Fed is about to complete its market boosting QE3 stimulus program, investors may find themselves reasonably wondering whether the markets may finally be on the brink of rolling over. How markets perform for the rest of October will be critically important in determining whether we are indeed arriving at a peak or if stocks still have the strength to run higher into 2015. For if stocks post a decisively red October, it will likely mark the beginning of the end of this graying bull market.

Please click on the link to read more of my article on Seeking Alpha.

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