Halloween just passed and I saw holiday decorations already going up.
It also ‘Tis the season’ for the best returns in financial markets. As the chart below shows, November and December have a history of positive returns. I am hopeful that history holds true this year.
Having said that, the stock market still has some work to do. October saw another solid rally that was, once again, rejected at a key level. The chart below shows that the October rally stalled out when it tried to get above 3,900 on the S&P 500 (green box). That level served as support back in September (blue box). So the question right now is which wins out – the tailwind of positive seasonality or the headwind of strong resistance at 3,900 level.
We are skeptical of rallies and remain defensively positioned to cushion against the possibility of deeper declines. We will sacrifice the beginning of any move higher for the insurance to not participate in further downside. When the S&P 500 manages to exceed the 3,900 level we will become more constructive on the recovery.
I hope this report is informative. Please share it with anyone you think would benefit from it.
November Calendar of Events (comments and additions for future months are always welcome)
- November is Long Term Care Awareness Month. Please reach out to us if you have questions or concerns about your future long term care or that of a loved one
REMINDER! Medicare open enrollment ends on 12/7/22 for coverage starting 1/1/2022 you can switch from original Medicare to Medicare Advantage, or vice versa. You can also switch from one Medicare Advantage plan to another, or from one Medicare Part D (prescription drug) plan to another. Please call us if you have any questions about your options.
November 5th Daylight Saving Time - Set those clocks back!
November 8th Election Day - be sure to vote
November 11th Veterans Day – says thanks a Vet
November 24th Thanksgiving – have a wonderful holiday
Sources: All Star Charts, StockCharts.com
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