Since the market peaked on September 19, stocks have become extremely volatile over the last five weeks. The S&P fell 9.8% from the peak to the trough on October 15. I have written several pieces about the sectors and how the sentiment could have helped you devise a plan ahead of the downswing.
Looking at the performance since the low on October 15, the S&P has gained back 8.2% from the low to the close on October 27. These numbers show how important the timing was for traders. To be clear, I consider traders to be those looking to hold positions anywhere from an hour to a few months. I consider those that invest anywhere from a few weeks to six months to be speculators and those that are looking to hold investments for six months or longer are investors in my book.Read More