Oct. 28 Kicks Off the Best 5-Day Stretch of the Year for Stocks

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Traders enactment connected the level of the New York Stock Exchange (NYSE) successful New York connected Oct. 25, 2021. (Spencer Platt/Getty Images)

Ths SPDR S&P 500 ETF Trust traded higher by 0.7 percent connected Thursday, but that should travel arsenic nary astonishment to investors paying adjacent attraction to the calendar.

The Numbers

According to Ryan Detrick, Chief Market Strategist for LPL Financial, Oct. 28 has historically been 1 of the champion days of the twelvemonth for the S&P 500 dating each the mode backmost to 1950. In fact, Oct. 28 was the champion time of the twelvemonth for stocks until the marketplace dropped 3 percent past year.

The mean summation for the S&P 500 connected Oct. 28 has been 0.46 percent, making it the 3rd champion day connected the calendar for investors. However, Detrick said the amusive has historically not stopped connected Oct. 28. Oct. 29 (+0.32 percent), Nov. 2 (+0.32 percent) and Nov. 3 (+0.41 percent) besides person highly beardown humanities returns. In fact, Oct. 28 marks the opening of the champion five-day agelong of the twelvemonth for the marketplace since 1950.

What’s Going On?

Third-quarter net play whitethorn play a relation successful the humanities outperformance successful precocious October and aboriginal November, but Detrick has an alternate theory.

“I’d similar to deliberation it has thing to bash with my day being connected October 28, but the information is bulls should beryllium alert that the coming days are historically immoderate of the champion of the year,” helium wrote this week.

Investors tin besides look guardant to the champion time of the twelvemonth coming up earlier year’s end. The S&P 500 has averaged a 0.5 percent summation connected Dec. 26, the time aft the marketplace closes for Christmas Day.

Benzinga’s Take

Historical calendar trends similar these tin beryllium fun, but investors shouldn’t trust excessively overmuch connected humanities data. With astir 362 dates of humanities information per year, definite days are going to beryllium by default amended for investors than others retired of axenic coincidence.

By Wayne Duggan