August is usually a weak month for investors. Post-election year Augusts are no different.
July is the best of the worst months, but in post-election years it unexpectedly better than usual.
April is the best month for Dow stocks. Its still good in post-election years.
March has a tendency to be rather volatile – weaker in post-election years than normal. Saint Patrick’s Day and Triple Witching Options Expiration Week offer certain interesting trade opportunities.
January returns weaken after options expiration Friday. Earnings season picks up next week, as a new US administration takes office. Expectations for a further rebound in stocks may already be baked in to consensus expectations.
The MACD indicators applied to DJIA, S&P 500 and NASDAQ are all positive as of today’s close. These leads to several buy signals across various equity indexes, according to the seasonal investment strategy.
November is a very strong month for US equities, but in an election year it really shines for the SPX and DJIA. Its much weaker for tech and small cap stocks.
Halloween typically offers investors a treat. A six day trading period starting next week is usually very bullish.
Seasonality is problematic this year, likely due to the elections and politics around another COVID stimulus package. Still, time and history work for the strategy.
After five straight monthly gains, the US stock market finally came under pressure in September. The NASDAQ hit the ‘correction level’ of a 10% slide. Markets have rebounded, but October is usually weak. Patience is needed for entry into the seasonally positive part of the year.