By Investor’s Yak
All stock market indices and sector charts remain below their August 31st closing prices with only a few exceptions. Even after the modest Labor Day rally and the FEDs stimulating decision to keep interest rates near zero, there is no substantial market progress. And there is still direction uncertainty with respect to end of September window dressing as well as the passing of a 2016 fiscal year budget.
Many times, an end of year rally can start as early as October. Investors should consider watching Action Zones and price lows for activity in October, November, or worst case as late as December. If a rally does occur, the best hope would be for stocks (and indices) to regain a strong position above their 50 and 200 day moving average (DMA). And if you find an opportunistic buy, be careful to take profits if January 2016 results in a reversal back down below moving averages.
Event calendar affecting markets in September
7 September – Labor Day
16-17 September – Fed meeting
28-30 September – End of month and quarter window dressing; could extend into October.
30 September – end of Fiscal year 2015 (2016 budget must be passed)
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