Thoughts {End Of The Month Edition}

Behold the perils of owing individual growth or momentum stocks when they disappoint.  See Facebook below.  A 20% plunge in a day after a poor quarter, lousy forward guidance and a disastrous earnings conference call.

Chart is from Tradingview.com.

Stocks are rebounding today after a general schmessing amongst growth names the past few days.  Most of that came about from poor forward guidance from several giant tech companies.  It is hard to tell whether what we're seeing today is investors scooping up beaten down shares or end of the month window dressing.  I'll maintain my stance that the market has the potential to see a bit of a rougher phase until sometime in the fall.  To that end I'll point out that stocks have hit a bit of wall as they've approached their previous highs set last winter.   

Also note that August is the worst performing month of the year since 1988.  For why that might be go back and read my numerous posts on market seasonality.

Here's the opposite view from Blackrock who will give you two reasons why volatility can remain low.

Back later this week.