1 November 2022 | Other

Stock Traders Almanac: the bearish trend to reverse in October

The Stock Trader's Almanac reports that October could end the downtrend. November, on the other hand, is often the golden mean in stock markets. So, a new bull market is expected, reversing the bearish trend of previous months. 

November is considered the first in a series of the six to eight most favorable months for trading. It is also a starting point of the three best months for stock investors. Mid-November is the golden mean of the four-year cycle, according to the paper. 

Most analysts, technicians and experts agree on a new bull market in the short run. Debates on the topic, however, are ongoing. There are concerns about a string of headwinds that investors are facing, serving as a starting point for a "Wall of Worry" with the bull market emerging. 

It is still unclear whether the bearish trend in the market is over, as estimated for October. The Dow Jones Index is showing its best performance this month, based on data since 1901. In fact, the paper stated that twelve post-World War II bear markets have been completed in October, including 1946, 1957, 1960, 1962, 1966, 1974, 1987, 1987, 1990, 1998, 2001, 2002, and 2011.

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