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Thus far, many of the seasonal trends have held true in 2011. None more than “sell in May and go away”. Equity markets peaked on May 1st and have been in a steady bear trend since. If seasonal trends continue to hold, October could be the beginning of a change in the bear trend.

According to the Stock Traders Almanac, October is a “great time to buy stocks” as it marks the beginning of the stock market’s strong seasonal period (via Stock Traders Almanac):

◆ Known as the jinx month because of crashes in 1929, 1987, the 554-point drop on October 27, 1997, back-to-back massacres in 1978 and 1979, Friday the 13th in 1989, and the meltdown in 2008
◆ Yet October is a “bear killer” and turned the tide in 11 post-WWII bear markets: 1946, 1957, 1960, 1962, 1966, 1974, 1987, 1990, 1998, 2001, and 2002
◆ First October Dow top in 2007, 20-year 1987 crash anniversary –2.6%
◆ Worst six months of the year ends with October
◆ No longer worst month
◆ Best Dow, S&P, and NASDAQ month from 1993 to 2007
◆ Pre-presidential election year Octobers since 1951, rank last across the board; excluding 1987 still near the bottom
◆ October is a great time to buy
◆ Big October gains five years 1999-2003 after atrocious Septembers

Source: Stock Traders Almanac

Source: October: 'A Great Time To Buy Stocks'