April is a big Month for the Dow Jones Industrial Average

By Todd Shriber, ETF Trends

The SDPR Dow Jones Industrial Average ETF’s (DIA) posted a 2% first quarter loss, but the first quarter is in the books and April could prove to be a critical month for DIA.

April is here and with the arrival of the fourth month of the year comes the arrival of the last month in the strongest six-month cycle for stocks. The good news is that April is often the best month of the year for the S&P 500. Over the past 20 years, the S&P 500 has risen in 75% of Aprils, posting an average gain of 2.2%, according to EquityClock.com.

Going back to 1950 April is also the best month of the year for the Dow.

“As today’s chart illustrates, it is not unusual for the stock market to perform well during the early part of the year. Looking forward, the averages favor a continued stock market rally as the calendar month of April has been the best month for stocks since 1950. After that, however, things tend to get a little dicier. Of the five calendar months that follow the strongest month of April, four rank as the weakest average calendar month performers since 1950,” according to Chart of the Day.

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The views expressed here are that of myself or the cited individual or firm and do not constitute a recommendation, solicitation, or offer by myself, D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

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