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2 Must-See Stock Charts for October 2021

by | Sep 27, 2021

After last week’s whipsaw action in the stock market, the last trading week of September looks to be setting up for big drama in October. 

We’re entering the week with a mixed outlook for futures as the growth-heavy Nasdaq looks to sell off due to higher yields in bonds, which is why it’s part of my list of the best stock charts to watch going into October 2021. 

And since winter is coming soon, we have to keep in mind upcoming energy shortages for heating options in major countries like China and in Europe. 

I expect small problems like these and commodity inflation to create a full-blown fiasco in the coming months, so traders need to prepare accordingly! 

We’re also rolling into a buyback blackout period, when 95% of listed companies in the S&P 500 are barred from buying back their own stocks.

We’ll be hitting this point in the first week of October, so buckle up! Stock buybacks have been a huge factor in the performance of stock returns for the past 10 years… 

Source Bloomberg.

But that’s not the only thing traders need to keep a lookout for this week, nor is this even one of the best stock charts to watch going into October 2021.

2 of the Best Stock Charts to Watch in October 2021

The markets have been full of mixed messages since the Federal Reserve meeting last Wednesday, which is why I’m taking a closer look at the 10-Year Treasury yield chart. 

Bonds have been selling off hard with yields breaking out, and I expect a shocking move to the upside in yields — this is just the beginning, so about 2% — that will unsettle stocks. 

This week is also starting with crude oil at five-year highs! I smell a parabolic move to the psychological terror level of $100 coming soon.

The Fed will not be able to brush off inflation this winter as Americans go broke trying to heat their homes…

The third quarterly estimate for gross domestic product also comes out this Thursday. Expectations are set at 6.6%, and we’re going to see how much effect the COVID-19 delta variant has had on the momentum of the economic rebound.  

Tied to the GDP is the personal consumption number, which, at 11.9%, is at a high level of expectation.

Both of those expectations seem ripe for disappointment and could become key market-movers this week. 

Let me know what you think about the best stock charts to watch in October 2021!

Send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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