August 22, 2017

Post Labor Day Trading

August is finally over and for most of Wall Street the end did not come quick enough. Before we get too excited I must point out that there could be more pain ahead for the bulls. Over the last 50 years September has been the worst performing month for the S&P. If I decrease the time frame to 15 years the results are roughly the same with August barely beating out September for the worst performing month of the year. If I decrease the time frame I still manage to get dismal results as the past six years have been witness to overwhelming weakness with an average return of -5.9%.

As dismal as of this sounds, we are actually excited by the new month . September should bring some wonderful opportunities for our ETF Extremes strategy. The ETF Extremes has lagged a bit, due to an unforeseen lack of signals over the summer months. Now that summer is nearing an end we should surely see an increase in signals and believe us we can’t wait.

The one positive is that the strategy has patiently been sitting on the sidelines during the recent market correction. While the market was losing, the strategy was maintaining its curent performance which is far better than the S&P since the strategy began back in early 2006. As I always say, patience is the key in this strategy and those that have been patient have, in most cases, been rewarded handsomely. The win ratio in the ETF Extremes remains one of the best, according to Pro-Trading-Profits (one of the most comprehensive, unbiased references that monitors the performance of newsletter services).

As for post Labor Day trading, well, it is often weak. Over the past 50 years the three days following the holiday have seen an average performance that is less than stellar. However, according to the Stock Trader’s Almanac September has “opened strong eight of the last eleven years”. We shall see soon enough.

As I have stated repeatedly in prior posts the next few weeks promises to bring quite a few changes to the site (new strategies, new insider page (for paid subscribers only) w/daily commentary) and we can’t wait. I hope you decide to join us on the journey! Have a wonderful and safe holiday weekend!

Andrew Crowder, www.crowderinvestments.com