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November Stock Market Predictions

Posted on | October 31, 2008 | 2 Comments

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The S&P 500 lost 198 points, 17%, in the month of October.  This was the worst month since October of 1987.  With October behind us, many investors will ask what the future holds.  While no one can correctly predict the future, we can use the past to take an educated guess.

The VXO, the exchange volatility index, hit levels that have not been reached since the dreaded month of October 1987.  The amount of fear that was in the market during October cannot be sustained for long, therefore there should be much less volatility and some market direction should be achieved.  Throughout history, after a high volatility period stocks tend to have a short term bounce, therefore it is safe to predict that the month of November will be positive or unchanged. It is quite possible that we have seen a short term double bottom at S&P 845, but only time will tell.

Volatility is the new catch phrase on Wall Street and I think the month of November will show very little volatility as the VXO comes back to normal levels to at least the 30s.  The direction is not certain, but it just seems unrealistic for the markets to remain in such a fear driven state.

Read more about stock market predictions at “We Haven’t Seen the Bottoms in the Stock Markets Yet”

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Comments

2 Responses to “November Stock Market Predictions”

  1. joel
    October 31st, 2008 @ 10:20 pm

    I did not realize that October is always a jittery month. Good thing it ended before I knew to worry about it.

  2. admin
    November 1st, 2008 @ 9:21 pm

    Yeah, hopefully November will leave to some stability!

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