2021 market action
continues to impress. S&P 500’s year-to-date gain of 14.7% ranks 19th out 72 years since 1950. While that’s impressive on its own, it’s even more
remarkable considering the 4.8% loss the index logged in September at the close
of Q3. We have compared here in the tables the top 30 year-to-date gains as of
the end of Q3 since 1950 to the top 40 that also had a September loss. Volatility
and downward action rolled into the very scary market month of October on
several occasions. You will recognize some memorable October plunges in 1978,
1979, 1987, 1989, 1997, 2018 and others. But in all but two of the years with
the big YTD Q3 gains with September losses – 1987 and 1978 – stocks bounced
back and finished Q4 and the year on an up note. If action over the past
several days is any indication we may yet see some more volatility and weakness
before All Hallows’ Eve, but our Best Six Months MACD
Seasonal Buy Signal is setting up quite nicely.