Wealth Watch: Markets Enthusiastically Shaking Off October Volatility - Bring On November!

Wealth Watch: Markets Enthusiastically Shaking Off October Volatility - Bring On November!

October 26, 2021

From the desk of Vance Howard:

The HCM-BuyLine® is positive and has built back a lot of strength after the selloff in late September/early October. The S&P 500 is hitting resistance and probably needs a few trading sessions to break on through. The markets are a bit overbought and will probably trade sideways for a few days. It’s nice to have October just about over with, because October has historically been a volatile month. I remember Black Monday, October 15th, 1987, when the market dropped over 20% that day. 


SPX, DJIA, and NDX recorded their third straight positive week, with SPX and DJIA successfully finishing at new all-time weekly high closes. Furthermore, the NASDAQ is less than 2% from all-time highs. Healthcare and consumer discretionary are snapping back sharply this week, and six sectors are recording gains of more than 2% over the rolling five-day stretch.  Transportation is now higher by 12% in the first three weeks of October, helping to recoup much of its weakness from May. Most sub-sectors tied to supply shortages, i.e., trucking, shipping, and logistics are outperforming sharply in the near-term. Sentiment has gotten more bullish as a result of the last three weeks of rally. 

Existing home sales rebounded 7.0% in September, the most in a year, to a 6.29 million unit annual rate, the highest level since January and above the consensus of a 6.10 million unit rate. It was led by a 7.7% jump in single-family sales, while condo/co-ops picked up a smaller 1.4%. All four regions posted gains for the month. The NAHB attributed the rise to homebuyers rushing to secure a purchase before a potential increase in mortgage rates. Beyond that, a continued economic recovery, gains in employment and compensation, and accumulated savings from fiscal stimulus during the pandemic continue to provide cyclical strength to housing demand. 


Vance Howard

Copyright © 2021, All rights reserved.

Our mailing address is:

Howard Capital Management Inc.
1145 Hembree Rd
Roswell, GA 30076

This newsletter is a publication of Howard Capital Management, Inc. It should not be regarded as a complete analysis of the subjects discussed nor should the newsletter be construed as personalized investment advice. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. It should not be viewed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Howard Capital Management, Inc. (“HCM”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from HCM. Please remember to contact your primary investment professional, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising HCM’s investment management services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment management services. HCM is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the HCM’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.

© 2021 Howard Capital Management, Inc. All rights reserved. Intended for receipt only and not for further distribution without the consent of Howard Capital Management, Inc.

McCarthy Financial Group's Blog: Market Insights & Wealth Watch

Schedule Appointment