The last day of the third quarter of 2020 ends in a fitting way with some chaotic and inconsistent action.
Things started slowly as there was a bipartisan agreement that the presidential debate was a dumpster fire. Most of the debate had little market impact but comments about how the vote may not be accurately counted and there may not be a winner on election night cast a negative light on things.
Luckily the focus quickly shifted to some very good economic reports and hopes that a deal on fiscal stimulus would be made. The indices continued to ramp up until about 2 p.m. ET when news hit that the parties were still far apart on the terms of a deal. That caused an almost complete reversal in gains but a little late-day buying, which was probably related to the end of the quarter, helped to push the market back up.
Breadth was 4-3 positive and the FATMAAN names did well, probably due to window dressing.
There were some good pockets of trading action but also some ugly reversals as well. The SPAC names have been a minefield lately and there are always a few biotechnology stocks that can cause problems too.
The month of October is known for a couple of big crashes but it is often a transitional month for the market as we move into the positive seasonality at the end of the year. Earnings season starts soon and that should provide us with a new supply of interesting trades.
Have a good evening. I'll see you Thursday.