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Three Stocks To Bolster Your September Returns

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It's widely known that September historically has been a difficult month for U.S. equities.  Since 1950, the S&P 500 has risen during the month of September 30 times and moved lower 38 times.  It's the only calendar month where the bears have had long-term success.  The September annualized return of -5.58% is one of only two calendar months with negative annualized returns.  The other is August, which has produced annualized returns of -1.04%.  There are several well-known, large cap companies that have bullish track records in September.  Here are three to consider:


Nike, Inc. (NKE):

NKE rises, on average, three out of every four Septembers and has gained an average of 6.0% during September over the past 20 years.  Technically, NKE looks solid and recently reported both revenues and EPS that exceeded Wall Street consensus estimates:

The 20 day EMA has been a solid entry level recently and NKE is currently trading near that key moving average.  Technically, it appears that NKE is a good position to keep its bullish September track record intact.

CME Group, Inc. (CME):

CME is in a very bullish pattern that, if confirmed with a breakout, looks to push higher.  Historically, September has been the best calendar month of the year for CME, with average September gains of 6.1% over the past 20 years.  Technically, here's what to look for on CME:

I'd look for either a confirmed heavy volume breakout above the 174 level on a closing basis or a pullback to test the rising 20 day EMA, currently near 169.  The PPO is quite strong, suggesting that a breakout is likely only a matter of time.

Alphabet, Inc. (GOOGL):

GOOGL loves the months of September and October, where the stock has gained an average of +5.4% and +11.7%, respectively, over the past 15 years.  Perhaps the best news is that GOOGL appears to be printing the inverse right shoulder in a bullish inverse head & shoulders continuation pattern:

Ultimately, a breakout above neckline resistance near 1270 would measure to 1340, a level we could see during GOOGL's bullish September-October time frame.

Happy trading!

Tom

 

Tom Bowley
About the author: co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years. His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading. A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015. Learn More
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