Well, just when you think that stock market is the goose that laid the golden eggs, it shows the cruel face. Market is screwed up. Everything is down. Fear and panic everywhere now.
Goldman Sachs Group Inc. reduced its expectation for the nation’s economic output for the July-September period from 3% to 2.7%. The government’s report on third-quarter GDP is due tomorrow. Economists are looking for growth at an annual rate of 3.3 percent after a record four straight quarters of contraction. Goldman Sachs’s prediction and weaker home sales report today contributed to big decline in Dow Jones today.
I am not surprised. Most of the big companies reported earnings. Many companies beat the market expectations. There is a lot of money on the table. Traders need to take profits to protect their capital. You will see similar corrections, October is notorious for that. Just put your stop losses tight and choose your investments wisely. As for as I am concerned, I have my shopping list ready. I will buy more quality stocks when the market goes even lower.
[...] Roller coaster ride in the market continues. It may be good for the day traders, but it creates anxiety for the rest of us. If you are a short-term investor, keep your stop losses tight. Today, the market is moving higher because of positive report from Institute for Supply Management (ISM). It said that its non-manufacturing index moved to 50.6 in October from 50.9 in September. The index was expected to hit 52.0 in October. Initially, I thought the market was going to tank because the index moved down compared to previous month. However, traders like the fact that ISM’s new orders and prices indexes both showed growth from September. [...]