Making Sense of the Stock Market

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A huge bay and another wild week on Wall Street as a selling pain rages on we start with a major sell off. The Dow getting slammed again down more than five hundred points at the lows of the day, the NASDAQ continuing to lead the rest of the market lower. It has been a red Red October. He hasn't seen yipping in and out in correction territory. It is now on track for its worst month since two thousand nine the NASDAQ down eleven percent this month alone. The Russell getting hit hardest down thirteen percent. So are we in for more selling what can stop the bleeding, which we expect next week guy? Dominate five questions in trouble. Jacob. Rattled off three like that. I like that you remember any of them He was was a. a. What expansion or more pinhead I believe so couple of Fridays ago when the s&p was out five and a half percent from that twenty nine forty all time high attorney Karen instead of think there's another seven or eight percent on a downside as you mentioned the s&p is down some nine and a half percent today. Given today's close I think we have another three or four percent. I think what we'll show an end to the selling. And by the way, you might have seen a little bit of today in the vix actually close on changed on a day, which I think is encouraging. Maybe that's something to do with the fact that it's Friday, I have no idea. But that's a good sign. I still think you have to see a day where the market really flushes. Maybe have it three percent day with a vix closes above thirty reverses. That's the body. I hear you saying you think we're not done. But ultimately is is the reason that we keep going lower. Well, now, we're planning back for Jerry, you're in the entire month of October. It just be a continuation of I'll answer that quick. Tore as I'd like to fed Powell, the fed is the reason we are here. I think we are confronting a Federal Reserve that at least since those fed minutes since that fed pal statement, I think it was on October second you've got her dynamic here. Third where the markets look at them. I mean, look at them from that point granted, there's some other parts of the market that we talk about whether it's industrials whether it's banks that have been struggling for a long time. But the broader the market and certainly the indices themselves and look at semi semi's you're down eighteen and a half percent on the month. Small-cap we noted that the star at the time of the show. So to me, this is really concerned that the fed is getting more at a time when there's data that's coming in right now. That's actually telling you the economy's getting stronger if anything we're running into headwinds, and whether that's true. But here's the thing. I mean, the fete defect was part of this. But to me, it was more that they lit a match and a dynamite factory. We had concerns over Europe. We had concerns over terrorists. They did not come over in fact that there was a slowing economy on the Fed Cup. Along and says, hey, you know, what I'm going to I'm gonna might raise rates. Then all of a sudden, everything starts self semi's. We're selling off before that. So there's a multitude of things you pick. What the reason was concern me this week, though, is we all talked about our earnings going to save the market and all of a sudden earnings come out, and they're not says matter either. So what's what's what's left to save it? So if you look at the fed is definitely the number one concern on investors minds knocked the market down October third FOMC minutes on October seventeenth knocked the market down. Again. We heard chatter about hawkish fed knocked the market down yet again. It's all rates. That's it. So I think so now if you look at why the market would stop it's fear, plus panic equals bottom. We've had fear. No, panic pitch elation. I mean, we had to be. That the lows of the session really feels awful day. Like that today, you know,

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