Posts Tagged 'S&P 500'

July 2020 Outlook: Climbing COVID Cases Threaten Rally

Climbing COVID cases and confusion about reopening the economy continues to confound the market. Even though hard working people and prudent businesses around the country are working diligently to reopen and safely serve clients and customers the increase in positive tests and hospitalization nationally is hard for the market to ignore.

Waiters are reminding diners to done their masks when ordering. Folks are waiting for the next elevator and not crowding in and business have hand sanitizer at the ready for ...

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July 2020 Market at a Glance

Seasonal:

Neutral. July is the best month of the third quarter, but bulk of gains are in first half of month. July is historically weaker in election years. NASDAQ’s midyear rally lasts until July 14 this year. July is the first month of NASDAQ’s “Worst Four Months” and the third month of DJIA & S&P 500 “Worst Six Months.”

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June 2020 Market at a Glance

Seasonal:

Neutral. June is the last month of NASDAQ’s “Best Eight Months.” DJIA and S&P 500 “Best Six Months” has already ended. NASDAQ’s Seasonal MACD Sell Signal can trigger as soon as the close on June 1. June has performed better in Election Years, second best S&P 500 month, #5 DJIA, #4 NASDAQ and Russell 2000.

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June 2020 Outlook: Rally Set to Pause at End of Best 8 Months

Our Best Six Months Seasonal MACD Sell Signal for DJIA and S&P 500 triggered on May 13 when this recovery rally took a brief pause. The rally then resumed adding to May’s gains and putting NASDAQ back in the black for the year and up 5.8% year-to-date on the close of May. But the market is bumping into some resistance here technically and looks set to pause again and pullback to recent support levels.

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Almanac Update June 2020: End of NASDAQ’s “Best Eight Months”

June has shone brighter on NASDAQ stocks over the last 49 years as a rule ranking seventh with a 0.8% average gain, up 27 of 49 years. This contributes to NASDAQ’s “Best Eight Months” which ends in June. June ranks near the bottom on the Dow Jones Industrials just above September since 1950 with an average loss of 0.2%. S&P 500 performs similarly poorly, ranking tenth, but essentially flat (0.1% average gain). Small caps also tend to fare well in ...

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May 2020 Outlook: Down “Best Six Months” Warning Sign

Despite the selloff on the last day of April, the Best Six Months ended on a positive note, registering the best month in decades and the best April since the Great Depression. We have been tracking our Seasonal Best Six Months MACD Sell Signal for DJIA and S&P 500 since April 1. The slower MACD Sell indicator turned positive March 26 and remains in an uptrend and has not issued a new sell signal yet. At this point it would ...

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May 2020 Market at a Glance

Seasonal:

Neutral. May is the first month of DJIA and S&P 500 “Worst Six Months. Our Seasonal MACD Sell signal has not triggered yet suggesting the rally could continue in the near-term. The history of “Worst Six Months” after a bad “Best Months” is not encouraging. This year’s negative January Barometer and breached December DJIA low, point to possible ...

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Almanac Update May 2020: Weaker in Election Years

May officially marks the beginning of the “Worst Six Months” for the DJIA and S&P. To wit: “Sell in May and go away.” Our “Best Six Months Switching Strategy,” created in 1986, proves that there is merit to this old trader’s tale. A hypothetical $10,000 investment in the DJIA compounded to a gain of $1,068,826 for November-April in 69 years compared to just $1,461 for May-October. The same hypothetical $10,000 investment in the S&P 500 compounded to $823,326 for November-April ...

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April 2020 Outlook: Beware the Bear Market Bounce

The Dow’s 6.4% rally on March 26 capped the biggest three-day surge since October 6-8, 1931. That may sound encouraging, but remember 1931 was the worst year for DJIA on record, down 52.7%. DJIA jumped 21.3% from the low on Monday March 23. This surge came on the heels of the fastest and most furious decline in stock market history. DJIA dropped 37.1% from its 2/12/2020 all-time high in 40 calendar days. It fell 35.9% in 31 days from the ...

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April 2020 Market at a Glance

Seasonal:

Bullish. April is DJIA’s best performing month since 1950, second best for S&P and fourth best for NASDAQ (since 1971). However, April also marks the end of our “Best Six Months” for DJIA and the S&P 500. Our Seasonal MACD Sell signal can occur as early as April 1 but could easily be delayed should the market continue to recover ...

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