{"id":57894,"date":"2021-10-07T00:57:32","date_gmt":"2021-10-07T07:57:32","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=57894"},"modified":"2021-10-07T14:58:33","modified_gmt":"2021-10-07T21:58:33","slug":"bullish-bearishness-jim-cramers-october-jitters","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/10\/07\/bullish-bearishness-jim-cramers-october-jitters\/","title":{"rendered":"Bullish Bearishness: Jim Cramer’s October Jitters"},"content":{"rendered":"\n

August through October are the most dangerous months of the year<\/a> for the S&P 500 (SPY). The historical drawdowns create a well-known pattern of trading that Jim Cramer of CNBC has referenced several times for at least a month<\/a>. While this year’s August failed to fulfill its destiny, September delivered on its promises with heavy selling in the last two weeks of the month. This selling originally increased Cramer’s confidence in the bullish bearishness that 1) predicts a rough first half of October followed by 2) a golden buying opportunity. Such precise forecasts are fraught with danger because so much can happen to take the market off-course from its destiny. Indeed, the tantalizing buying opportunity ahead is already giving Jim Cramer October jitters. One day, Cramer warned that buying in the stock market could be a temporary relief rally<\/a>. The very next day, he recommended buying into any intraday pullback<\/a>.<\/p>\n\n\n\n

\"Bullish<\/a>
Bullish bearishness: since at least 1998, the S&P 500 tends to hit a summer peak in early August and bottoms out in mid-October. Source: CNBC<\/a><\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

Cramer uses the above chart as a trading guide, and it explains his early October jitters. A non-precise buying strategy in the first three weeks of October is sufficient to enjoy the returns from a healthy rebound from the October lows. By late November, the S&P 500 should exceed August’s highs. While I also have a case of bullish bearishness, I avoid the jitters by following market breadth indicators<\/a>.<\/p>\n\n\n\n