LIVE MARKETS-August: "take profits and relax on the beach"
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AUGUST: "TAKE PROFITS AND RELAX ON THE BEACH"
U.S. stocks are about to wrap up one of their hottest Julys ever, with the S&P 500 .SPX already closing at a record high 10 times - the third-best July since 1928 - and the Nasdaq Composite .IXIC hitting an all-time best with 14 peaks, according to SentimenTrader.
This kind of "super months" are rare in summer, typically occurring between November and January. And historical data shows that after similar July surges, "August has been a struggle," writes Jason Goepfert at SentimenTrader.
Historically, when the S&P posts at least seven multi-year highs in July, it rises in August only 36% of the time, with the following two months positive less than half the time.
The Nasdaq has shown more resilience, often bouncing back strongly 4 months later, led by tech stocks and also impressive healthcare returns. Though, when the index posts 7 or more multi-year highs in July, "August was a crapshoot".
To conclude, Goepfert says: "As we head into some of the lowest-volume trading of the year in August, it has usually proved to be a good time for traders to take profits and relax on the beach".
(Danilo Masoni)
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THAT’S WHY TARIFFS MIGHT PROMPT THE FED TO CUT RATES CLICK HERE
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