«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
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cashflow Club 8:30 PM EST
Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.