September is the well documented weakest S&P month of the year and with the late August sell off surrounding unrest in the Mideast, the least taxing cerebral trade at this juncture is to fall in line with the Seasonal Shorts. But let me share with you a positive setup that is developing for September, which merits consideration.
July was up +4.95% and the S&P was down 3.13% for August. Since 1950, September is a respectable 11-4 following a Positive July/Negative August Setup for an average gain of 1.48%. This alignment of the stars has produced a positive September on the last eight occasions as the four losses all occurred prior to 1960. You may recall the recent 8.76% September case in 2010 which sent many seasonal Bears into permanent hibernation.
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The September Surprise Setup