Does A Worse than Average S&P 500 In August Mean September Will Also Suffer?

trouble abounds (Credit: Sad Dog by Ink Hog, https://www.flickr.com/photos/34191996@N07/3859862007)

The simple answer is yes! The data show that a worse than average August for the S&P 500 (SPY) increases the likelihood of a worse than average September. I use average to mean the average maximum drawdown as calculated and analyzed in “How to Trade During the Stock Market’s Most Dangerous Months“. In this case, … Read more

How to Use ChatGPT to Test Theories on Stock Prices

Percentage of days IWM experiences a gain based on the combined performance of QQQ and IWM (February 12, 2019 to February 8, 2024)

I have a good friend that comes up with interesting theories about relationships in the stock market. Recently, he claimed that “more often than not”, on a day where the big cap stocks gain and the iShares Russell 2000 ETF (IWM) does not gain, IWM will experience a daily gain on the next trading day. … Read more