Market Update: Prepare for August
Technical market indicators are weakening as August approaches. Post Election Year weakness is likely to arise in the next two months.
August Seasonality
August is usually a weak month for investors. Post-election year Augusts are no different.
Seasonal Selling Arrives
The NASDAQ’s “Best Eight Months” and Mid-Year Rally have come to an end.
US Stock Market Update
Entering a bullish period after a fake out breakdown overreaction after the FOMC last week. What to watch this summer and what is setting up for a run now.
July Trading
July is the best of the worst months, but in post-election years it unexpectedly better than usual.
Friday Investment Talk: Emerging Markets
Valuations are compelling in Emerging Markets, but momentum is weak. Seasonally, June is weak. Gold and silver show strength against dollar weakness.
June Seasonality: The Dow’s Second Worst Month
Divergent markets pervade June. The NASDAQ ends its best 8 months and the Dow can really suffer, especially in post-election years.
Worst Six Months
‘Sell in May’ critics are running wild this year. Meanwhile, bearish trends are usually strong in the next six months. Historically, these months warrant caution.
May Seasonality
May is a tricky month. May in post election years are generally positive, and are one of the best months of the year.
Seasonality: Sell Signal Triggers
Last week, the MACD line on the two of the largest and well followed US Indexes rolled over to sell signals. This ends the bullish 6-month period through April.