With October now finished we are heading into a period of strong seasonality to finish the year. Just three weeks ago stocks looked like they were on a broken elevator down and nothing could stop it. However, we finally found support at one of the critical moving averages and sure enough stocks rebounded as the buyers flocked in to support the markets. Since the bottom the markets are up almost 10% in a little over three weeks! This would qualify as an impressive snap back rally!
With the market having rebounded so strongly in such a short period of time it is important to be more specific in your approach to stocks. Focus on the sectors that may not have rebounded as much and still provide decent valuations. For those of you that want to dip your toes into the energy names it is impossible to know when they will bottom. Stick to your own investment game plan and use times like the middle of October as days to accumulate your favorites.