October opportunities for the brave
Australia provides an opportunity for fleet-footed traders to go short and then go long
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OCTOBER is here and with it the increasing probability of a severe market collapse. October is the mythical monster of the market, infamous for crashes. Like most myths it has a bit of truth and a large dose of imagination.
In recent years market corrections have happened in September. For some the lack of a correction in September this year suggests there must be a big correction coming in October. The correction is an opportunity to enter a long-term uptrend at a favourable price in anticipation of the uptrend continuing. The Nasdaq is a perfect example. Or the October correction is a precursor to a general market collapse, as shown most infamously in 1987. We look at the warning signs that suggest this might be the case with the Australian market.
However, it's worthwhile remembering that most times October closes higher at the end of the month than it opened at the beginning of the month. That's an enticing prospect for adventurous traders.
