Chart Talk {09.12.17}

This post from the Almanac Trader shows why investors fret about September.  Here's the author, Jeff Hirsch's analysis regarding the historical trading by each day over the past twenty years.  Notice the weakness as the month advances:

"Over the last 21 years the market’s performance in September has been turbulent. DJIA recorded back-to-back losses in 2001 and 2002 of 11.1% and 12.4% respectively, but DJIA was up 7.7% in 2010. Average losses range from 0.06% by NASDAQ to a 0.69% decline by DJIA. Based upon the above chart September typically begins well and all five indexes generally trade choppily higher until around the 15th trading day of the month. From this point until the month closes, DJIA, S&P 500, NASDAQ, Russell 1000 and 2000 give back any early-month gains and drift into the red."

*Long ETFs related to the S&P 500 and the Nasdaq in both clients and personal accounts.   Long ETFs related to the DJIA and the Russell 2000 as legacy positions in certain client accounts.  Currently short SPY and ETFs related to the S&P 500 in a personal account related to an options strategy not employed in client accounts.   We reserve the right to change these investments without notice on this blog or via any other form of verbal, written or electronic communication.  

Link:  Almanac Trader: "Typical September Pattern: Late Month Breakdown"

Back Thursday.