Here are two interesting charts showing how stockmarkets have performed historically during each month of the year. One chart shows the average monthly gain for the Dow for the past 60 years and the other represents the monthly performance of the All Ordinaries for the past 30 years. They show similar results but with some differences. What they have in common is that April is the best month for the markets followed by July and December. September is the worst month for the Dow while October is the worst month for the All Ords. February and June are negative months for both markets.
The XAO Indicator paints the daily bars on a chart - blue to show a rising market and red to show it falling. This indicator has been tested over 30 years. When a bar turns blue, 67% of the time the market will move higher before turning red again. When it turns red, it is a time for caution. Sometimes when red, the market can fall substantially.
I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can you lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.
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