By Investing.com Staff
The Stock Traders Almanac, which successfully predicted that October could be a “bear killer,” highlights that November often is a “sweet spot” for markets and is leaning toward the case that we have entered a new bull market.
“November is the 1st month of the ‘Best Six/Eight Months,’ and the 1st month of the best three consecutive months November through January,” the Almanac states. “Midterm November is also the 1st month of the best six consecutive month period and the Sweet Spot of the four-year cycle. #2 DJIA, and month of the year. NASDAQ’s best month in midterm years, averaging 3.5%.”
The Almanac said while many analysts, technicians, and pundits continue their deliberations, they lean toward the case “that we have entered a new bull market – at least for the near term.”
“Sure, we have concerns and recognize the many headwinds the market faces, but perhaps this is the beginning of that proverbial ‘Wall of Worry’ nascent bull markets climb,” the Almanac states.
Looking back at October, the service said while the jury is still out on whether October has killed another bear market, the Dow’s surge is the best October performance ever going back to 1901. The Almanac highlighted in the past that twelve post-WWII bear markets have ended in October: 1946, 1957, 1960, 1962, 1966, 1974, 1987, 1990, 1998, 2001, 2002 and 2011 (S&P 500 declined 19.4%).
Story Credit: investing.com