Almanac Investor Alert: 7/28/2006
*** August's Vital Statsistics Report***
The lazy, hazy days of summer are frequently when investors get burned. August has been the worst S&P month since 1987 and is no prize across the board. There are few bright spots, but mid-month exhibits strength, likely related to options expiration. First days have been down seven of the last nine years, taking big blows in 1998 and 2002; the last two Midterm Election Years. Don’t forget that the shortest bear market on record bottomed after 45 days on August 31, 1998, shaving 19.3% off the Dow.
The first nine trading days of the month have been historically weak. Around month-end stocks have been hammered frequently. Over the last ten years the last five days sold off sharply six times and on the next to last trading day the Dow and S&P have been up only once in ten years
Please trade carefully.
Those who study market history are bound to profit from it.
Sincerely,
Jeffrey A. Hirsch, Editor & Publisher
