There are a number of seasonal patterns, that occur on a regular basis. Here are just a few:
- May 1 to Oct 31. The market tends to be flat and choppy. Ups and downs. Stats say the market (dow), will only move .4. Any time your ROI starts with a Point, is not good. 🙂
- Nov 1 to April 30. The market (dow) on average moves 7.4 percent up.
- Dec 1 through Jan 15 each year, the dow on average moves 9%. Since 1950. That is my Christmas TRADE. Wins a very high percentage.
- Oct is an up month generally. But most of the major crashes have happened in Oct.
- Sept for almost 50 years, is usually a down month. 68 percent of the time.
So what? Well you should be playing equities Nov through April. covered calls and credit spreads, can be done any time, but when the market is flat that is good. So summer months, and fall are good times. You often here investment guys say, “in may go away” They are talking about the flat months. Maybe plan to buy on the dip in Sept, and play the growth months. Lots of other strategies. If you are interested.