Radio Rallies & Reversals
Well December seems to have gotten off to a pretty good start. Global stock indexes were in the green thanks to an encouraging ADP Employment Report in the US and better than expected economic numbers out of China. US bourses experienced what is called a '90% up day', where upside volume equals 90% or more of the total upside plus downside volume, and points gained equal 90% or more of the total points gained plus points lost.
From a seasonal standpoint, December is historically a good month for stocks. Since 1871, the S&P500 has been positive roughly 54.68% of the time, since 1960 that number moves to 70%, and since 1980, the S&P500 has been positive 73.33% of the time; and the momentum seems to carry right through to May.
What are some of the sectors to watch? Agriculture and small caps; but keep in mind that small caps have been outperforming since the bottom in '09. Sectors that rotate out of favor this time of year are natural gas, and metals and mining.
GB
From a seasonal standpoint, December is historically a good month for stocks. Since 1871, the S&P500 has been positive roughly 54.68% of the time, since 1960 that number moves to 70%, and since 1980, the S&P500 has been positive 73.33% of the time; and the momentum seems to carry right through to May.
What are some of the sectors to watch? Agriculture and small caps; but keep in mind that small caps have been outperforming since the bottom in '09. Sectors that rotate out of favor this time of year are natural gas, and metals and mining.
GB
posted by Gordon Bell at
7:02 AM
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