As two months, September and October have a chequered history in terms of stock market performance. Will 2010 be any different, well we have 6 weeks or so to find out and the usual measures of stock market sentiment are reaching extremes (of complacency).
There has been some commentary in the press about Gold reaching new highs on ‘investor jitters’ but the charts tell a different story with extreme readings of bullish sentiment. The run up since March 2009 topped out some time ago and although there remains a possibility intervention will create another liquidity fuelled rally higher – this is not likely to be before late November, early December.
This means now is an ideal time to reduce exposure to stocks and shares at least until the potential for a sizeable seasonal sell off has passed.
