Looking at any time the market has closed lower 4 or more times, I found 21 occurrences. Ten finished the next month higher and eleven finished it lower. Average gain was 5.1% and average loss 4.5%.
The longest losing streak was in 1974 when the S&P 500 finished lower 9 months in a row.
Looking at consecutive lows on a monthly chart does not seem to provide any quantifiable edge.
1 comment:
What about the rest of the year?
Someone I talked to said that EVERY time the first 3 months of the year are negative -- the market performance for the rest of the year has ALWAYS been strongly positive.
I would like to see if that is true -- 1st q. down = 9 months of gains.
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