The Successful Search For The Golden Egg

man in black suit jacket and black pants figurine

April is historically a great month for the stock market. And for those investors who are aware of its history, it can be a “golden egg.”

History has it that in the 16th century Protestant Reformer, Martin Luther took his congregation outside and the woman and children hunted for eggs when a woman stumbled upon the empty tomb and thus sprung the concept of the Resurrection. As a result, many families today have an Easter Egg hunt for their children and believe this tradition is integral to the Easter holiday.

Were you aware that of all months, April has been one of the three best months for the S&P 500 going back to 1928? (January and July are the other two).

April has an average return of 0.88% a median return of 1.12% and is positive 63.4% of the time. (July is the best with a positive 67.2% of the time).

However, wait…it gets better.

Over the past more recent two decades (2000-2020), April has been the best month of the year with an average return of 2.5% and a positive return 80% of the time. And in 2021 the bullish bias is in full force.

One of our Alpha Rotation models that trades the bullish and bearish trends on the major indexes issued a new buy alert on one of the major three (SPY, QQQ, and IWM) for Monday and the other two are already in long positions.

Our Risk Gauges are either 100% bullish or they have moved in the positive direction across the board.

So statistically speaking…the market is going into the bullish month of April feeling optimistic and hopeful. Are you ready for it?

Managing Risk

As we suggested in last week’s commentary, “Play Ball,” it is important to have an investment edge.  Whether through diversification, position sizing, or how you deploy your assets between models, we want you to have the home-field advantage.

MarketGauge is always performing its own Golden Egg hunt as we seek to uncover the stocks and ETF’s that have the highest likelihood to outperform.

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