Buy December or Sell Saturn

December: Friend of the Bulls

December stands out as one of the months that consistently produces gains. The chart below shows that December had gains 81% of the time (17 of 21 years). Not bad. The data for each December included all trading days between the close of trading on the last day of November to the close of the first trading day in January.



Will the market go for 18 of 22 as 2012 approaches? Only time will tell. Personally, it would be better if the S&P500 continued to fall to 1050 where it really belongs. That way the CMI won't overheat and can coast for the remainder of the year without moving out of the current QID trade. Of course, that would be free ride, and this year has been anything but a free ride. With that said, I'll expect the magic of December to kick in again. Bulls get ready. The CMI will have to catch up.

Saturn Plays to the Bears

For those that insist that the market will drop further, perhaps you are under the spell of Saturn. Astrologically speaking, and according to that fortune in that cookie I just ate, the relationship of Saturn to the Sun can have an affect on the rising and falling tides of the stock market. I won't go into the past predictions that happen to include some significant market reversal dates but as you can see in the list below, the most recent Saturn/Sun opposition date was October 28th 2011. Digging a little deeper ( I'm as skeptical as you), the success rate for the Saturn/Sun tango in the sky appears to be about 55%, so take the list of upcoming dates with a grain of stardust.

Saturn in opposition to the Sun (negative market reversals)
Oct. 28, 2011
Jan. 22, 2012
Sept. 7, 2012
Dec. 2, 2012

This obviously leads (try to keep up) to positive market reversal days of...
Feb 25, 2012
May 14 2012
Aug. 4, 2012

Also, fortune say, "lucky trends bring lucky friends".

So there you have it. I do know for sure that the market will move either up, down , or sideways.