The Bullish Winds Are Blowing In

As most of you are probably aware, I do a TON of historical research about the stock market.

I've been tracking the S&P 500's daily results since 1950 and the NASDAQ's daily results since 1971. There are both short-term and long-term trends that we should be aware of, especially those of us who like to short-term trade. I will be discussing several of these trends during our just-announced Market Manipulation event that will be held on Saturday, November 5th, beginning at 10am ET. Please be sure to mark your calendar as you will NOT want to miss this event!

But for right now, I want to provide you more of a long-term trend. At the close tomorrow, October 27th, we usher in the most bullish EXTENDED historical period of the year. There is no long-term historical period stronger than from the close on October 27th to the close on January 18th. Here are the annualized returns for this period vs. the balance of the year on the S&P 500:

S&P 500:
October 27th (close) to January 18th (close): +21.22%
January 18th (close) to October 27th (close): +5.24%

That's a significant disparity and one that we should all be aware of. This upcoming period is THE most significant reason why it's important to be invested in U.S. equities. As I've previously stated, the S&P 500 has closed higher on January 18th than it was the prior October 27th in 62 of the last 71 years. This is not a GUARANTEE that prices will rise, but I think you can see the odds are certainly stacked in the bull's favor.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.