Radio Rallies & Reversals

It looks like stock markets are taking a bit of a breather today after yesterday's run-up. Markets are counting on the next round of quantitative easing by global central banks to jump start economic growth. All I know is that it's getting harder and harder to find any value out there without moving down the quality spectrum. With interest rates already in the basement, corporate earnings are going to have to keep surprising to the upside. Companies will have to keep working on cutting costs and increasing productivity if economic growth doesn't pick up. Don't expect the job situation to get better anytime soon.

Seasonal trades to consider include 6 n 6 which usually kicks off the last four days in October, along with information technology, and consumer discretionary. November, December and January are considered the three stars. Seasonal trades to unwind are bonds, utilities, oil health care, telecommunications, and yes, gold. With all this monetary stimulus however, things may work out a little differently.

GB