The gauntlet is over⦠[TradeSmith Daily]( âAlways Remember to Buy in Novemberâ
By Lucas Downey, Contributing Editor, TradeSmith Daily Watching your portfolio drag day after day gets old… really fast. Outside of the Magnificent 7, most stocks are heavily underwater this year. As painful as this is, the sour sentiment is actually quite consistent throughout history. This isnât to make light of the recent drawdown. Rather, itâs to equip you with evidence that better days are likely coming in a big way. Data shows that November kicks off one of the most seasonally strong periods going back decades. We may have already seen the bottom. And the first piece of evidence is how much more fundamentally healthy the market is looking right now… RECOMMENDED LINK [Could This Tiny Microcap Be the Biggest A.I. Opportunity of the Decade?](
This may be the biggest tech opportunity youâll see in your lifetime. (HINT: Itâs not Google, Microsoft, Nvidia, or other obvious companies that have already run up).
[Go HERE for details]( The Market Is Getting Healthier
Before we showcase todayâs powerful study, letâs first review the recent market landscape. Youâve likely heard the old adage, âSell in May and go away.â 2023 is the following this playbook to a tee. Since May, the S&P 500 has effectively gone nowhere with a flat return of 0.62%. If you recall, stocks surged into late July only to give all of those gains away. You can see that below in the chart:
Yahoo Finance
But this only reveals a small part of whatâs really happening. When you dive below, youâll see how broken most stocks are. As of today, just 19% of companies in the S&P 500 are trading above their 50-day moving average. Thatâs up from the 6% on October 1. This is still lousy, shows that the market is getting a lot healthier. Remember what happened in early October? Back then, the media was harping over the destruction in the utilities sector. [Utilities stocks were so washed out]( I pounded the table on them as a deep value play. Many of those names have started recovering, helping the small improvement in breadth lately:
Barchart
To say the market is oversold is an understatement. But when you review history, youâll notice that May kicks off a trying time for stocksâ¦eventually spilling over into a buying time for stocks that weâre entering right now. RECOMMENDED LINK [Our A.I. predicts the future price of TSLA, NVDA, and AAPL](
TradeSmith, one of the worldâs most cutting-edge financial tech companies, just launched a breakthrough, new A.I. algorithm called An-E... and showed many of its past predictions and just how accurate they were (often precise to within a tenth of a percent). The company also showed what An-E's predictions were for three of the most widely held stocks on the market one-month into the future.
[You can see what those predictions are by going here]( Sell in May and Buy in November
Todayâs study proves that the phrase âSell in Mayâ actually holds a lot of merit. Going back to 1987, the 6-month period of May through October represents some of the most lackluster results youâll see. On average, the S&P 500 gains a modest 1.97%. Thatâs 37 years that suggest you may want to Sell in May. However, as usual, thatâs only half the story. Because NovemberâApril trounces those returns with a 6.47% average bump:
Not only does your win rate increase to 75%, the 6-month period, starting right now, more than triples the prior period! When you couple the historical evidence with the fact that [most stocks are extremely oversold]( youâre mixing a cocktail of explosive upside ahead. I donât have a crystal ball and canât possibly know the future. But what I do have is a plethora of signals aiming at better days ahead. If we should âSell in May and go away,â itâs clear we should also âAlways remember to buy in November.â Nowâs one of the best times Iâve seen in a long while to begin shopping for stocks. Donât let fear keep your portfolio on the sidelines. The odds point to the makings of a rally beginning soon. Stack the odds in your favor and youâll win. Regards, Lucas Downey,
Contributing Editor, TradeSmith Daily P.S. Knowing to buy stocks in November should be just Step 1 of your plan. If you want to make the most of the move I see coming, you need [another layer of data on your side](. Thatâs where my business partner Jason Bodner and Quantum Edge Pro come in. Jasonâs spent his entire career tracking down the precise metrics that make up monster stocks. Anything that has:
- Killer fundamentals…
- A bullish technical setup…
- And major institutional-level backing…
Goes directly on his watchlist… And eventually, straight to his subscribersâ inboxes. Jasonâs queueing up [a bunch of great recommendations to take advantage of the next several months](. If you aim to do the same, you should be a part of Quantum Edge Pro. [Get all the details on how to join right here.]( Get Instant Access
Click to read these free reports and automatically sign up for research throughout the week. [25 Doomed Blue Chip Stocks]( [3 Stocks That Could Triple This Year]( [Download now on the Apple Store](
[Get It On Google Play]( [Customer Support: 866.385.2076](tel:+866-385-2076) | support@tradesmith.com
[Request Customer Service](mailto:support@tradesmith.com) ©TradeSmith, LLC. All Rights Reserved. You may not reproduce, modify, copy, sell, publish, distribute, display or otherwise use any portion of the content without the prior written consent of TradeSmith. TradeSmith is not registered as an investment adviser and operates under the publishersâ exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmithâs content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results. TradeSmith P.O. Box 340087 Tampa, FL 33694 [Terms of Use]( [Privacy Policy]( To unsubscribe or change your email preferences, please [click here](. [tradesmith logo]