Leeb's Ground-Floor Trader

Weekly Update

October 19, 2007 

Friday's big market selloff- on the 20^th anniversary of Black Monday was the major news of the week. The earnings-related drop capped off a down week for stocks that represents a shift in mood after the rally that began when the Federal Reserve cut short-term interest rates on September 18. This isn't too surprising; the global credit crunch was and is expected to lower economic growth in the U.S., Europe and perhaps elsewhere- so some market volatility is to be expected. And as today's anniversary reminds us, the October earnings season often is a time of sharp selloffs.

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