Yale & Jeff Hirsch
About the Editor Jeff is editor in chief of the Almanac Investor newsletter Stock Trader's Almanac, StockTradersAlmanac.com, and the Hirsch Organization. He makes frequent appearances on CNBC, CC, Fox, and Bloomberg. Yale Hirsch is founder of the Stock Trader’s Almanac.
Historically, stocks have come into March like lion and gone out like a lamb, meaning stocks have generally moved higher early in the month and then sold off later in the month as the first quarter comes to a close. A quick glance at the chart on page 28 of the Stock Trader’s Almanac 2012 illustrates this clearly and the bullish cluster of days that highlights March’s “Sweet Spot” beginning on the ides March (the 15th). But three days later the market has a tendency to retreat. This seasonal decline is impacted by triple witching, end-of-quarter portfolio profit taking and restructuring and tax season. I had the pleasure of discussing this and the impact of the election on stocks in March and beyond as well as the recent low volatility on Bloomberg’s “Street Smart” show with Adam Johnson, Lisa Murphy and Stephanie Ruhle. I would not be surprised if the streak of low volatility ends after March triple witching in a 2-5% correction before we rally to new recovery highs. Then we can expect a greater decline of 5-15% to materialize over the spring or summer before turning higher again later in the summer or fall.
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