Another week of nearly no volatility… in what has historically been one of the month’s most fraught with volatility. Four very small days of gains to begin the week followed by a decent leg upward Friday. Bulls continue to be in complete control and records of “little volatility” continue to be shredded. The S&P 500 gained 0.9% for the week. Apple took a hit Thursday and while the fall of the stock dented the NASDAQ a bit that day, the damage was not too serious. The NASDAQ gained 0.4% for the week.
”The S&P 500 has made it through the first half of the typical volatile month of October quite well. While history told us to expect a more excitable tape, the trend has persisted. In fact, judging by the VIX’s continued slide, things have even gotten even calmer,” Frank Cappelleri, technical strategist at Instinet LLC, said in a report. “As noted as October began, if the SPX can make it through next Monday, Oct. 23, without a big drop, it could break the record for consecutive days without a peak to trough 3% decline. The 1995-1996 period of 241 remains in first place for now,” he said.
According to Bespoke Investment Group, “2017 is tied for the fifth most closing highs on record, dating back to 1929.”
Little to note economically this past week, but industrial production in the U.S. rebounded in September after two straight declines, rising 0.3% in September, in line with expectations.
Semiconductor stocks have been on fire.Continue reading