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Halloween Turn of the Month Trade

The last 4 trading days of October and the first 3 trading
days of November have a stellar record the last 27 years. From the tables
below:

Dow up 21 of last 27 years, average gain 2.00%, median gain 1.40%.
S&P up 23 of last 27 years, average gain 2.08%, median gain
1.50%.
NASDAQ up 23 of last 27 years, average gain 2.64%, median gain
2.30%.
Russell 2000 21 of last 27 years, average gain 2.24%, median
gain 2.50%.

Many refer to our Best Six Months Tactical Seasonal
Switching Strategy as the Halloween Indicator or Halloween Strategy and of
course “Sell in May”. These catch phrases highlight our discovery that was first
published in 1986 in the 1987 Stock
Trader’s Almanac that most of the market’s gains have been made from
October 31 to April 30, while the market tends to go sideways to down from May
through October.

Our Seasonal MACD Buy
Signal
triggered October 8. Prospects for the usual yearend rally and the
Best Six Months look encouraging.

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