Major averages fell yesterday on higher volume as European banks took a hit and Japanese bonds fell sharply overnight. The UK's PMI signaled contraction ahead of tomorrow's policy statement from the Bank of England. Expect continued dovish postures from central banks.
Headlines have been prattling on about how August and September are two of the weakest months for the US stock market. But this statistic is relatively meaningless. Since 1972, August has indeed been a weak month. Its average return since then was -0.35% due to some years where the market had some steep falls. But the percent of the time the market was up in August was 54%.
September was the worst performing month with the average month down -0.93% from 1972-2015, and down 55% of the time. But that means it was up 45% of the time.
So as always, it is far more important to focus on price/volume action of major indices and leading stocks to guide the way.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
