Consumer sentiment and earnings beats were not enough to keep the major indices in the green. Tech giants like Apple continued to languish after hitting all-time highs just days ago. This is in advance of what many predict will be the launch of the iPad mini.

The lackluster performance in October so far has mostly been attributed to stocks taking a breather after the near constant hype and buildup around QE3. A more pessimistic read could be institutional investors along with retail are positioning themselves ahead of the election and the outcome of the negotiations regarding the impending fiscal cliff facing the United States.

Europe also remains an outstanding issue with no real resolution in sight. China’s data deluge also begins in earnest over the weekend, so investors want to see how much the growth engine of the country is cooling off.

Sure, so far earnings season has seen a fair share of beats, but with the expectations bar being so low, are those beats really beats in the traditional market sense? Economic data points continue to muddle the picture.One month you have a stellar jobs report, then the next it slips back. Housing continues to languish and consumers, while more upbeat, are not exactly rushing to stores or to their local realtors.

The market has turned into a game of wait and see as events unfold over the coming months. [Read more...]