Despite September's notorious reputation for being the stock market's worst month of the year, the S&P 500 actually rose 1.7% this September.
Stephen "Sarge" Guilfoyle, a former New York Stock Exchange trader and panelist on TheStreet's latest Trading Strategies roundtable, said that this past month may have bucked the trend due to renewed hope regarding tax reform and hawkish talk from the Fed. Noting that most of the movement actually happened at the end of the month, he also attributed the upward trend to notable forward movement in the small caps and transports.
As we move into earnings season and the ECB meeting at the end of this month, Guilfoyle said there is potential for sideways movement or even a small pullback, but all-in-all, he anticipates upward movement to continue throughout the quarter.
More October Trading Strategies from TheStreet:
- 5 Reasons the U.S. Dollar Could Plunge in October
- Intel, AMD and 24 Other Stocks I Love for October
- 4 Reasons We Could Have Another October Stock Market Crash