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Re: phunnibone post# 24861

Sunday, 08/22/2010 8:11:52 PM

Sunday, August 22, 2010 8:11:52 PM

Post# of 61041
Traditionally, yes it is. It's the last month to squeeze in a summer vacation for most Americans, so they are not at their computers (and Wall St. has a tendency to go party out in the Hamptons in August, which cuts down a lot of trading too), plus large expenditures are going into the upcoming school season from grade school supplies/back to school clothing, to college fees...and for many years, late Aug/early Sept. was when upcoming new year model cars were introduced in the showrooms, creating money flow into car purchases and not stocks. However, every now and then, you get a year where August has a late summer rally.

Unfortunately, September, followed by October, are two of the worst months for crashes and down markets. September can be very volatile. November and December can be recovery and up months with what they call a "Christmas Rally".