While the cause of the “flash crash” on May 6, 2010 is still under investigation, Congress is moving quickly to pass financial reform law and the SEC has proposed regulations to reduce erratic trading. 

The Farmer’s Almanac for stocks is wrong again.  The September swoon came early this year with the Dow Jones Industrial Average (DJIA) down - 4.34% for the month of August and down - 4.0% year to date through August 31.  And the faithful fall rally has come early as well, with the DJIA up a fabulous 5 %

The 2010 election is over and President Obama was given a good whooping for delivering on his campaign promises.  Popular opinion is a fickle thing, however, and the public memory is short.  A Republican majority will storm back into the House of Representatives early next year.

The quarter just ended was the most challenging since 2008. Stock indexes posted their worst quarterly loss in three years, with the S & P 500 index down 13.87% for the quarter and down 8.68% year to date through September 30. Volatility continues in October, and new lows for the year were set on Monday, October 4, before a reversal to the upside.