BLOOD ON THE STREET

The Massacre of the Bulls got started and yesterday fastened further and seems today keeps going on. What’s going on now? Correction folks, no doubt. Panic, fear and anxiety rule the market nowadays, it seems to me only seller left on the floor. Don’t try catch up the falling knife, the early buyers always burn out. The rebounce will only come when the early chickens are already burned out.

Some core details of general massacre:

• VIX 3 years high, jumped Wednesday 16%
• SP500 and DOW turned negative in year they erased all YTD gains
• Dow's worst percent decline since Nov. 9, 201
• The Dow has lost more than 1,000 points this October.
• Yesterday was the 1,233rd worst day in the history of the S&P

Some historical statistics of October:

• On a daily percent basis, the top three, and eight of the 15 largest down days occurred in October.
• The DJIA’s best October in the past 20 years was in 2002, when it gained. 10.6%. 
• Its worst was no surprise, in 2008, when it lost 14.1%.
• Over the last 20 years the Dow has averaged a gain in October of 1.7%. 
• At the moment, the Dow is off 6.7% for October.

The knife is still in falling mood so don’t try to catch only try first when will be above the 16.300 resistance level.

The BFM Assets Team.