Why Stock Market Bulls Should Be Extremely Excited For April

It’s still March, however, like any good chess player we want to be thinking a few moves ahead of the competition.  With that in mind, it’s helpful to take a look at the seasonal trends in April.  Historically, April is the best month of the year.  Let’s review some facts from the Stock Trader’s Almanac:

◆ April is still the best Dow month (average 2.0%) since 1950

◆ April 1999 first month ever to gain 1000 Dow points, 856 in 2001, knocked off its high horse in 2002 down 458, 2003 up 488

◆ Up five straight, average gain 4.3%

◆ Prone to weakness after mid-month tax deadline

◆ Stocks anticipate great first quarter earnings by rising sharply before earnings are reported, rather than after

◆ Rarely a dangerous month, recent exceptions are 2002, 2004, and 2005

◆ “Best Six Months” of the year end with April

◆ In pre-presidential election years since 1951, average gains more than double (Dow 4.3%, S&P 3.7%, NASDAQ 3.7%)

◆ End of April NASDAQ strength.

Resilient market, another good earnings season on the horizon, QE2 and the Bernanke Put, sell in May is still a month off, historical trends.  It almost looks too good to be true for the bulls….

Source: Stock Trader’s Almanac


This post previously appeared at Pragmatic Capitalist >

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