November, December and January constitute the year’s seasonally
strongest 3-month period for the S&P 500, Dow Jones Industrials and the
NASDAQ Composite. This seasonal strength is created by a combination of the
annual, semiannual and quarterly operations of institutions and the habitual
behavior of retail investors and consumers.
The November-January 3-month span
has produced a gain of 4.3% for the S&P 500 & DJIA since 1949. October-December
runs a close second at 4.1% for S&P and 3.9% for DJIA. Since 1971 NASDAQ
has gained a whopping 6.3% November-January with December-February in second at
5.0% and October-December in third at4.4%.
These charts also highlight the Best
and Worst Months of the year with the Best running from October/November to
April/May/June and the Worst from May/June/July to September/October. Stocks
have been firming up since we issued our Seasonal MACD Buy
Signal to subscribers on October 8 and look poised for a solid yearend
rally that continues into early 2022.