According to MKM Partners chief market technician Jonathan Krinsky, February is historically the weakest month dating back four decades — stocks have risen just 0.06 percent. However, in years following a presidential election, the S&P index has fallen on average 1.85 percent dating back to 1977.
Krinsky broke down the stats in a CNBC "Trading Nation" segment.
But What About This Year?
According to Krinsky, the fact that the market's streak of not seeing a decline of 1 percent or more over the past 75 days, coupled with February's historically poor performance, implies investors should brace themselves for a decline in the market.
Krinsky even suggested that the S&P index could decline at least 3 percent and as much as 6 percent in the coming weeks. While this selloff "stinks," investors shouldn't panic and should instead welcome the selloff.
"We don't think it's anything serious and we would actually view it as a welcoming buy opportunity," he said.
Nevertheless, the market pro cautioned that the risk in the short term is to the downside.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.