Tackle Today: September’s Seasonality Stinks
September 1, 2022
«It’s the worst month of the year.»
Traders,
There are many seasonal quirks to the stock market. Some are random. Others have proven consistent over time and deserve at least some attention. One which commands your immediate attention is the terrible track record of September.
Today’s chart reveals the grim reality that September has been the worst month of the year for stocks. This has been true for the past 10, 20, and 71 years. In Midterm years (year 2 of the Presidential Cycle), it only ranks as the fourth worst month, but that’s hardly any consolation given the weakness seen across every other time frame.
Consider this another feather in the bear’s cap. As if they didn’t already have enough going for them. Interest rates are ballooning, the Fed is very much anti-stocks and wants economic pain to rein in inflation, and the price trend of the stock market is very much down. Weak seasonality is simply the cherry on top.
Video Of The Day: Jedi Options – What is the Risk Graph
In today’s Jedi Options, Coach Tyler teaches what is the #RiskGraph and how to use it to take your #optionstrading to the next level.
Chart of the Day: S&P 500 & Volume
“We know that Sept. is usually a weak month, but it is worse when things are already bad heading into it. S&P 500 down >15% YTD heading into Sept? (like ’22)
Down 5% in ’62
Flat in ’66
Down 12% in ’72
Down 11% in ’02
Be aware the calendar isn’t doing anyone any favors yet.”
@ryandetrick
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