LAST WEEK WAS OUTSTANDING!

SP500 posted its biggest weekly gain of 2014. Three days gap up in the last 7 days. Against all the worries of Ebola the sentiment was positive and all benchmarks closed green and delivered nice weekly returns. SP500 rose 4.1% for the week, stopped the four-week losing streak and finished its biggest weekly percent gain since January 2013. DJIA gained 2.6% for the week. Nasdaq, the tech index climbed 5.3% for the week, its largest weekly percentage gain since December 2011.

There was lots of pessimism in the last 6 weeks which turn into optimism last week. The market due this uncertainty is still so volatile. Indices have been volatile this month, with Thursday’s session marking the 10th in October that the Dow ended with a move of more than 1%. That is the most since November 2011. The market was in the real roller-coaster nerve killing mood, which mostly hated by investors. This pattern usually creates by Mr. Market the most dreamless nights for an average investor.

If you didn’t buy the dip as we recommended last Monday you are out. The train has left the station without you that is pity, but not too late yet. The SP500 hit our forecasted level at 1.970. The index is a bit pricey now, but not super pricey yet and still there is room for more gains.

The BFM Assets Team.