• Chartist Corner: This Chart Says Get Ready To Sell

    by  • October 23, 2013 8:53 am • Chartist Corner, Charts to Watch

    Well, now that I have your attention, I’d like to share an amazing looking chart and one that does say be cautious.

    Based on historical October returns going back to 1950, October tends to peak on the 22nd (yesterday) and drop pretty hard until the 27th.  Well, we made new highs yesterday and futures are lower so far this morning.  Could it play out again?














    I’m by no means turning outright bearish here and I do expect a continued strong bid into the end of the year, still, we’ve had a great run and now history is saying be open to some weakness.  As a trader, don’t fight history.

    In fact, once we get past some potential late October weakness, check out what usually happens in November and December.


    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).