The Market Next Week
You’ve hear it before: sell in May and go away.
But do you know the numbers behind that adage? According to S&P’s Sam Stovall,
since 1945, S&P 500 stocks gained an average 7.2% between November and April.
Between May and November, the figure drops to 1.5%. Reasons for this seasonal
bias include: the April 15 deadline for IRA investments, the fact that most
pension and 401(k) contributions happen in January. In addition, mutual funds do
“window dressing”–which includes dumping losing stocks–before the end of their
fiscal year in October.
That said, there are certainly opportunities
during this period, especially if you shorten your time frame a little bit. Just
like there are often strong rallies in a bear market, there are sometimes decent
tradable during the May – November period. Slowest is the summer, when many
traders are on vacation. All is not lost, however. You just need to be more
selective and careful. Pick and choose your setups. Stick to your trading plan.
Maybe trade in the morning only and take the rest of the day off. (I’ve talked
with many traders over the years who’ve told me they do well in the
first hour–only to give it back later in the day).
If You Trade Options…
Try the
TradingMarkets Professional Options Trading College.
If You Day Trade…
…the
Alvarez Factor could
potentially really improve your trading!
If You Swing Trade…
Attend the
TradingMarkets Swing Trading College!
See
Steve Primo’s article for a recent trade example.
The New, Improved
TradersWire
If you haven’t been in TradersWire for a while,
swing by next week–you’ll be pleasantly surprised. We’ve made a lot of changes,
including precise buy and sell alerts on stocks and E-minis and Mini-sized Dow
contracts, expanded education and trading tips. And as always, there are some
good traders in the chat room. I’m not ashamed to say that I’ve learned a lot
from some of these traders through the years, and I’m willing to bet you could
learn something, too. So come on by, we’ll
see you in
TradersWire on Monday!
Big Cap
Earnings Announcements for the Week of
August 8th
Company |
Symbol |
Date |
| Dynegy | DYN | Monday, August 8 |
| Fluor Corp. | FLR | Monday, August 8 |
| Harmony Gold | HMY | Monday, August 8 |
| II-VI | IIVI | Monday, August 8 |
| Isis Pharmaceuticals |
ISIS | Monday, August 8 |
| Lamar Advertising |
LAMR | Monday, August 8 |
| Priceline.com | PCLN | Monday, August 8 |
| 4Kids Entertainment | KDE | Tuesday, August 9 |
| Alliance Gaming | AGI | Tuesday, August 9 |
| Blockbuster | BBI | Tuesday, August 9 |
| Brightpoint | CELL | Tuesday, August 9 |
| Cisco Systems | CSCO | Tuesday, August 9 |
| Clear Channel Communciations |
CCU | Tuesday, August 9 |
| E-Loan | EELN | Tuesday, August 9 |
| Echostar Communications | DISH | Tuesday, August 9 |
| Fossil Inc. | FSL | Tuesday, August 9 |
| Hansen Natural | HANS | Tuesday, August 9 |
| Lions Gate Entertainment |
LGF | Tuesday, August 9 |
| Panera Bread | PNRA | Tuesday, August 9 |
| Walt Disney | DIS | Tuesday, August 9 |
| Advance Auto Parts |
AAP | Wednesday, August 10 |
| Autobytel.com | ABTL | Wednesday, August 10 |
| Avnet | AVT | Wednesday, August 10 |
| Federated Department Stores |
FD | Wednesday, August 10 |
| Jack In The Box | JBX | Wednesday, August 10 |
| News Corp | NWS | Wednesday, August 10 |
| Analog Devices | ADI | Thursday, August 11 |
| Bema Gold | BGO | Thursday, August 11 |
| Briggs & Stratton Corp. |
BGG | Thursday, August 11 |
| CREE | CREE | Thursday, August 11 |
| Dell | DELL | Thursday, August 11 |
| DreamWorks SKG | DWA | Thursday, August 11 |
| Four Seasons | FS | Thursday, August 11 |
| Kohl’s | KSS | Thursday, August 11 |
| NVIDIA | NVDA | Thursday, August 11 |
| Pacific Sunwear | PSUN | Thursday, August 11 |
| Pep Boys | PEP | Thursday, August 11 |
| Target | TGT | Thursday, August 11 |
| Urban Outfitters | URBN | Thursday, August 11 |
| Weight Watchers | WTW | Thursday, August 11 |
Scheduled Stock Splits for the Week of
August 8th
Company |
Symbol |
Ratio |
Payable |
Ex-Date |
| Bimer Dental Management Services | BDMS | 2-1 | Aug 8 | Aug 9 |
| Hansen Natural | HANS | 2-1 | Aug 8 | Aug 9 |
Upcoming Economic Events for the Week of
August 8th
| Date | ET | Release | For | Consensus | Prior |
| Aug 9 | 8:30 am |
Productivity (Prelim) | Q2 | 2.0% | 2.9% |
Aug 9 |
10:00 am |
Wholesale Inventories | June | 0.3% | 0.1% |
Aug 9 |
2:15 pm | FOMC Policy Announcement | June | ||
Aug 10 |
2:00 pm | Treasury Budget | July | -$57.8B | -$69.2B |
Aug 11 |
8:30 am | Retail Sales | July | 1.0% | 1.7% |
Aug 11 |
8:30 am | Retail Sales (Ex Auto) | July | 0.7% | 0.7% |
Aug 11 |
8:30 am |
Initial Jobless Claims | 08/06 | NA | 312K |
Aug 11 |
10:00 am | Business Inventories | June | 0.2% | 0.1% |
Aug 11 |
8:30 am |
Export Prices (Ex Ag.) | July | NA | -0.1% |
| Aug 12 | 8:30 am | Import Prices (Ex Oil) | July | NA | -0.4% |
Aug 12 |
8:30 am |
Trade Balance | June | -$57.1B | -$55.3B |
Aug 12 |
9:45 am |
Michigan Sentiment (Prelim) | Aug | 96.9 | 96.5 |