Reward 500 Tiger-coinsThe "October Effect" is considered one of the most notable periods on the financial calendar, as two major U.S. stock market crashes—October 1929 and October 1987—occurred during this month.
Historically, October has shown significant volatility, with the Dow Jones experiencing the highest intraday swings since 1896.
According to LPL Financial, since 1950, the market has seen greater than 1% fluctuations in October, more than any other month. $S&P 500(.SPX)$
Although September has recorded the most negative returns over the past 90 years, the events that triggered the 1929 crash and the 1907 panic actually began in September or earlier.
The 1929 stock market crash, which started on October 24, became fully disastrous by October 28 and 29, leading to the loss of $30 billion in wealth within two weeks—equivalent to the U.S.’s total spending during World War I. It took until 1954 for the market to recover to pre-crash levels.
Similarly, "Black Monday" on October 19, 1987, saw $DJIA(.DJI)$ drop 22.6% in one day, erasing $500 billion in value globally. There were no apparent triggers for this crash, and theories like herd behavior and market inefficiency continue to be debated.
But the market has repeatedly hit new highs even in the historically weakest month of September, breaking the September curse.
Can the market break the October effect this time?
Are you ready for October effect or October high?
Which is more possible to happen?
What's your trading plan for October?
Avoid high volatility or embrace it?
Leave your comments or join the topic to win tiger coins~
Comments
I expect the as the month leading up to the US eelection, there might be a flight to safety first before the sign of apparent presidential winner becomes clear. Hoping if it happens, I am focus and will buy at the next dip.
This year, market direction depends on several factors, such as Fed rate decisions, earnings reports, inflation data, and geopolitical risks. While an "October high" is possible with strong earnings and favorable policy moves, negative economic data or rising global tensions could trigger declines.
Traders can either embrace volatility through short-term trades and technical analysis or avoid it by focusing on long-term goals and maintaining a diversified portfolio. Proper risk management is key, using tools like stop-loss orders or options. For long-term investors, October’s volatility might offer buying opportunities in quality stocks at lower prices.
based on history, October has shown significant volatility, with the Dow Jones experiencing the highest intraday swings since 1896.
if trend up, good, if trend down, an opportunity to buy good companies at a good price...
@Shyon @GoodLife99 @Universe宇宙 @rL @Aqa @koolgal @LMSunshine @SPACE ROCKET @HelenJanet @TigerGPT
Can the market break the October effect this time?
Are you ready for October effect or October high?
Which is more possible to happen?
What's your trading plan for October?
Avoid high volatility or embrace it?
Leave your comments or join the topic to win tiger coins~
For me, the trading plan for October is to ride the uptrend until an exit signal appears. Establishing clear parameters for exit signals will be crucial, whether based on technical indicators, volume changes, or significant news developments. Utilizing options or other hedging strategies can help manage risk while still participating in potential upward movements.
Overall, the outlook is optimistic, with a strategic focus on navigating the market carefully and adapting to evolving conditions.
@Tiger_comments @TigerStars @TigerGPT