What Does a Strong Sept Mean for the Stock Market?
Stock-Markets / Stock Markets 2024 Dec 13, 2024 - 08:40 AM GMTSeptember is seasonally the weakest month of the year, and has been so for 3 years in a row until September 2024 resulting in the unexpected up closing month, though there are too factors that should be obvious -
1. Three years down in a row increases the probability for an UP September, a little more attention to detail should have flagged this as being probable.
2, That during a bull market the risks are to the UPSIDE.
Nevertheless an UP September allows one to see what this now implies for the stock market over the coming months and year.
There is a 81% to 87% chance of an Up Q4 with an average gain of 2.5% which from 5762 implies 5900 with probability slightly stronger for Nov to Dec which implies to buy the October dips, Whilst an UP October is basically a coin flip ay 63%.
For the 7 best month pattern from 1st Oct to 30th April has an 88% to 93% probability for a strong bull run with an average gain of 4.5% to 5% which from 5762 implies S&P 6050. Whilst only a marginal advantage to buying 1st Nov vs 1st Oct though again this does not account for intra month volatility.
Whilst for the full 12 months there is a 94% to 100% probability for an higher S&P with an average gain of 5.1% to 6.75% implying 6150.
Bottom line folk should seek to be invested for the bull run into April 2025, and likely continue on into September 2025 so expectations are for a bullish Q4 and 2025, with the S&P targeting a trend to above 6000 early 2025 and likely to continue trending higher during the year which means I will definitely be continuing buying any dips in target stocks during a probable volatile October.
This article is an excerpt from my recent extensive analysis that was first made available to patrons who support my work - Stock Market October Correction Window Into Post US Election Rip the Face Off the Bears Rally
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Presidential Election Year Seasonal Trend
What Does a Strong September Mean for the Stock Market?
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By Nadeem Walayat
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
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