I have been saying since late August that I expect markets to sell off in September. So far, I have been dead wrong. September has bucked the trend of being the worst month for bulls, and the markets, despite yesterday's sell off have been near 5 year highs.
I maintain that the markets are going to sell off. I was wrong about Sept as a whole, but I expect next week to be a down week and at least the first 2 weeks in Oct to be down. Why? Well because it is end of the quarter and hedge funds, mutual funds and portfolio managers need to protect their gains from the last five weeks. Although nothing fundamentally has changed in the market, institutions will be doing whatever they can for the remainder of this month to ensure their percentage gain for the quarter is not impacted.
Wait for a pull back before you buy anything. It's already started. Wait for more.
Faisal Laljee