After Big Bounce Will Bears Bite Back?

Posted On November 1, 2018 3:47 pm

bear bull market

Source: Shutterstock.com/g/Bacho

After a very rough month, stocks have enjoyed a nice rebound. But there are several indicators that say the worst might not be over.

The major stock indices lost, on average 7%, during October — the worst monthly performance since 2016.  

And that decline was pared significantly by a 3.6% rally in the last two days of the month. It continued on this first day of November. This has many people thinking that they’ve seen the near-term low. But, looking at the bigger picture suggests that the bear market may come back to bite again.

 First, there is strong historical data that shows that the last two days of October — and the first two days of November — are the best…

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Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

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