Good Monday morning. We’re officially out of August/September seasonal weakness where our major indices experienced losses in the  4-7% range. With October-phobia underway, we’ll learn soon enough if the lows are in or if we’re going to have a mini-capitulation event prior to what we continue to expect will be a strong rally into year end.

Here’s what we do know. There will be no government shutdown (at least for another 45 days). There will be no rate hike decision from the Fed (for another 31 days). And we know that Q3 earnings season kicks off towards the end of next week. We expect Q3 earnings to beat analyst estimates by a wide margin. As always, it’s not the news that matters most, its the markets reaction to that news. 

As we wrote last Thursday: 

"At minimum, we’re looking for a multi-day move higher to kick in. We’re about to enter both a new month and new quarter, with significant fund flows that come with it (pensions, retirement plans, share buybacks, etc). It’s co...