He sees more market weakness in September because of the following events that occur regularly in this month:
- Analysts reducing their initially optimistic earnings estimates as the end of the year comes closer
- Hurricane season causes disrutption in production and consupmtion of consumer staples.
- A lag in consumer sales. Back to school shopping happens in august, and Christmas starts after September, so there is a slowdown in consumer spending
- The anniversary of 9/11. This has a negative effect on stocks, psychology and sentiment. And with Bin Laden being killed the perceived threat is greater this year.
Look for the bottom of the market on October 28 plus or minus 3 weeks (stay tuned for a more exact date as the date approaches). He also suggests natural gas using the exchange traded fund FCG.
Check out the videos for yourself:
http://watch.bnn.ca/#clip526485 - Vialoux gives his big picture outlook.
http://watch.bnn.ca/#clip526486 - Vialoux discusses the seasonal trade on natural gas.
http://watch.bnn.ca/#clip526494 - His top picks and a summation of his outlook.