{"id":11155,"date":"2014-10-11T13:15:16","date_gmt":"2014-10-11T17:15:16","guid":{"rendered":"http:\/\/www.pgm-blog.com\/?p=11155"},"modified":"2014-10-11T13:15:16","modified_gmt":"2014-10-11T17:15:16","slug":"will-october-2014-be-a-month-to-remember","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/will-october-2014-be-a-month-to-remember\/","title":{"rendered":"Will October 2014, be a month to remember?"},"content":{"rendered":"

\"\"<\/a>\"\"<\/a><\/p>\n

Dear\u00a0PGM Capital\u00a0<\/strong>Blog readers,
\nIn this weekend’s blog edition, we want to discuss with you, the market rout in the West that started around mid September this year.<\/p>\n

USA MARKETS:
\n<\/strong><\/span>U.S. stocks capped a wild week with fresh losses, as sharp declines in technology shares dragged the broader market lower and the Dow Jones Industrial Average fell back into negative territory for the year.<\/p>\n

In the week of October 6, the DOW Jones Industrial\u00a0plunged a whopping 465.59\u00a0points or 2.74% as can be seen from below chart.<\/p>\n

\"DOW-5<\/a><\/p>\n

From its all time high of September 19, 2014 of 17,279.74 points, the DOW-30 Index fell with 735.64 points or 4.32 percent<\/span><\/strong> in the period of September 19 – October 10 and is now down for the year.<\/p>\n

The tech-heavy Nasdaq Composite ended down 102.10 points, or 2.3%, to 4276.24, bringing its losses for the week to 4.5 percent<\/strong><\/span>. That marked the largest weekly point decline for the Nasdaq since early August 2011, when the U.S. credit rating was downgraded.<\/p>\n

The S&P 500 declined 22.08 points Friday, or 1.1%, to 1906.13, and finished down 3.1 percent<\/strong><\/span>\u00a0for the week, its worst weekly point showing since September 2011.<\/p>\n

EUROPEAN MARKETS:<\/span>
\n<\/strong>European shares dropped sharply on Friday and Germany’s stock market, one of the region’s best performers since the 2008 financial crisis, fell to a one-year low as concerns mounted over the German and global economies.<\/p>\n

The DAX, which had soared to a record high of 10,050.98 points in June of this year, depreciated with 574.47 points or 6.15 percent, in the week of October 6, to close at 8,788.81 points on Friday October 10 as can be seen from below chart.<\/p>\n

\"DAX<\/a><\/p>\n

As can be seen from below chart the German DAX is down 809.44 points or
\n8.43 percent<\/strong><\/span> Year-to-Date.<\/p>\n

\"DAX<\/a><\/p>\n

The Londen FTSE-100, fell with 3.2 percen<\/strong>t<\/strong><\/span> during the week of October 6, to close on Friday, October 10 at a 52-week low of 6,339.97 points as can be seen from below chart.<\/p>\n

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THE VIX AT 20-MONTH HIGH<\/strong><\/span>:
\nThe VIX<\/b> is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index, a popular measure of the implied volatility of S&P 500 index options. Often referred to as the fear index<\/i> or the fear gauge<\/i>, it represents one measure of the market’s expectation of stock market volatility over the next 30 day period.<\/p>\n

As can be seen from below chart the VIX, spiked up on Friday, October 10 with 2.48 points or 13.22 percent to 21.24 points, which is its highest close in over 8 months.<\/p>\n

\"The<\/a><\/p>\n

Above chart shows that the VIX \u00a0<\/strong>is up 40%<\/span> <\/strong>in the week of October 6, and has experienced its\u00a02nd biggest week in over 4 years.<\/p>\n

THE CNN FEAR & GREED INDEX AT EXTREME FEAR:
\n<\/strong><\/span>CNN has a “Fear and Greed” index<\/a> for the market. They use some indicators to attempt to sense how fearful or greedy investors are at the time. They then display their results on a 0-100 scale, 0 (zero) being the most fearful and 100 (one hundred) being the most greedy. If investors are greedy stock prices should rise and if they are fearful stock prices should fall.<\/p>\n

As can be seen from below chart, the CNN \u00a0Fear & Greed Index hit a record low of 1 (one) on Friday, October 10, 2014, which indicates Extreme Fear.<\/p>\n

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PGM CAPITAL COMMENTS:
\n<\/span><\/strong>After reading the above, most of you would be asking yourself:<\/p>\n