What's next for stocks? The market is down this morning as traders and strategists are trying to figure out where the market will go for the rest of the quarter and into 2014.
I can give you the short take on the (bullish) consensus: Stocks will dip in the next three weeks as earnings warnings for the fourth quarter come in more aggressive than expected. The issue is whether overall earnings growth slows--which the market can handle--or goes to zero or negative (to which the market will react very negatively).
Most traders I talk to are eager to buy after the market drops, say, five percent in the next three weeks and most believe we will rally modestly going into the end of the year.