MIllion Dollar Traders

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Hello traders

I hope you’ve all had a good week!

The stock market has been chugging along following a little volatility towards the end of last week, though there are signs that they may be somewhat constrained in the coming weeks on lower volumes during summer. The following chart from Bloomberg shows how stocks have tended to plateau between July and October, according to the average performance since 1992.

Despite the potentially dull outlook, our equity market Checklist began the month in a positive position with a score of +3. We are due to update our Checklists for the coming month in the next few days, where Trading Club members will of course have immediate access.

As you can see from the following chart, this has proven to be the correct call with the S&P 500 rallying from around 4200 at the beginning of the month, with a couple of short-lived pullbacks providing opportunity for traders to build their long positions.

We’ll have to see whether the score changes when we publish our new update next week. If the score remains as positive as it has been of late, then I see little reason to read too much in to seasonal trends. However, if we do see a more neutral position, coincident with an expected summer lull, then this could also provide a valuable setup to potentially trade the range in the coming weeks.

More on this next week! In the meantime, Lex and I have also been busy recording the latest episode of our Million Dollar Traders Podcast which is free to access on Spotifyand YouTube. Our guest this week was Hugo Manenti (@hugomanenti95) who shared his investing journey from zero to $20 million in his first 12 months trading as an eToro Popular Investor, and how he beat the market with returns of almost 90% last year.

Given the new content available for you this week, I thought I would keep this post otherwise brief. To learn more about our methods, and join me for more analysis in real-time, check out our MDT course and Trading Club pages where you can preview everything that we cover.

Have a great weekend,

James

Disclaimer: For educational purposes only. Even though we do our best to provide reliable data, you should not trade based on this information.

© Copyright 2021 Lex van Dam Financial Education. Further distribution prohibited.

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