Trick-or-Treat?
We have seen huge swings in the stock market during the month of October. With Dow rising 800+ points in a day just to see it drop 1000+ points the next day, it is insane for many investors and traders. Gloomy economical news, earnings surprises, and the general psychological fear among investors caused all of this.
October is the same month that brought the 1929 stock market crash and Black Monday in 1987. Many people lost their whole life savings but others have managed to earn a fortune by doing the exact opposite of what everyone is doing - shorting stocks instead of buying them.
IMO, today's action wasn't too bad as many stocks began to recover and gain by a significant percentage. Even though earlier losses were still not offset, I would say today was a treat for many oversold stocks out there. With the elections coming up, we shall see what happens in the next few days.