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October 28th Stock Market Entry Point

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Thackray’s 2011 Investor’s Guide notes that October 28th on average during the past 60 years is the optimal date to enter North American equity markets for a seasonal trade until May 5th. His book notes that a $10,000 investment in the S&P 500 during the past 60 periods starting on October 28th 1950 and ending May 5th 2010 resulted in a portfolio valued at $924,470. In contrast, a $10,000 investment in the S&P 500 from May 6th to October 27th during the past 60 period resulted in a portfolio valued at $6,727. A $10,000 investment in the TSX Composite Index during the past 33 periods from October 28th to May 5th resulted in a portfolio valued at $187,526 whereas a $10,000 investment during the past 33 periods from May 6th to October 27th resulted in a portfolio valued at $6,307.

Important! These dates are average optimal dates for entry and exit over long periods of time. Actual optimal date each year is based on technical analysis and can vary by as much as four weeks. North American equity indices and related sector indices currently are overbought and their momentum indicators are showing early signs of peaking/rolling over. The optimal date for equity indices will be later than October 28th this year. The charts will let us know the timing. Stay tuned.

Following is a list of optimal entry dates for the seasonal trade in North American equity markets during the past nine years:

Year Date

2001 November 1st

2002 October 10th

2003 October 27th

2004 October 26th

2005 October 14th

2006 November 6th

2007 November 27th

2008 October 27th

2009 November 5th

 

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