Wednesday, October 27, 2021
The calendar is about to do a lot of favors for the bulls, as late October and early November historically are quite strong.
October 28 was the best day of the year, until it fell more than 3% last year, but this day is still one of the strongest days historically for stocks. Not to be outdone though, October 29 and November 2 and 3 are also some of the better days of the year. “I’d like to think it has something to do with my birthday being on October 28, but the truth is bulls should be aware that the coming days are historically some of the best of the year,” explained LPL Financial Chief Market Strategist Ryan Detrick.
As shown in the LPL Chart of the Day, the single best day to buy at the close and hold for the next five trading days is today, October 27. Yes, these 5 days were lower last year by 0.6%, but you have to go back to the late 1960s to see the last time they were down two years in a row.
Lastly, November has been quite strong historically. In fact, since 1950, and the past 10 years, it is the best month of the year, while it ranks second over the past 20 years and during a post-election year. “November is the best month of the year, but it doesn’t seem to get nearly as much love as you’d think,” added Ryan Detrick. “We all assume December is the best month, but November is actually better and gets very little fanfare. Maybe it should be a month for the bulls, not for turkeys.”
Please read Bullish Setup Into Year-End for more of our thoughts on what stocks could do the remainder of 2021.
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