NYSE and Market Seasonality for August
The NYSE Composite is coming into the weakest seasonality of the year, as August and September remain two of the worst months for the stock markets, investors and institutions alike. Consider international ETFs like Brazil, Argentina, Mexico and the European Union (EU) countries as money flow pushes those investments higher.
NYSE Seasonality – Its Summer After All
In the past five years, August underperformed without exception, with September a bit stronger only in 2017. Traders and investors are on vacation after all, so there are fewer participants to buoy the market. The graphic below goes back 10 years for good measure.
All things considered, NYSE Composite (NYA) has been breaking to higher levels, with the strongest GDP growth in the past 10 years as a tailwind. The question remains, will we move higher this time?
NYSE New Highs – Still Bullish
With many indicators overbought, and advancing stocks slowing (bottom panel) we look to the industrials and financial stocks to take the lead this time of year.
Banks, energy, and big cap industrial stocks have been breaking out lately, so we’ll focus on AXP, BA, GS, JPM and few other Dow Industrial (DJIA) components to lift us higher this week.
Apple (AAPL) will be in focus today, as it reports after the closing bell Tuesday. Watch AVGO and SWKS for sympathy moves.
Futures are flat going into the Opening Bell.
Banks are favored today.
Join us LIVE at 9:20 AM to discuss potential trades from the weekly watch list. There are a half dozen undervalued stocks on the list with good technical metrics. LRCX is an example.
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