ChartWatchers

Three Stocks To Bolster Your September Returns

 | 

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: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to ChartWatchers to be notified whenever a new post is added to this blog!
comments powered by Disqus