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Pretty Soon We Need To Start Talking About The "September Effect"

We're still weeks away from Labor Day, so we won't dump this on you just yet... but coming soon we'll need to start talking about the so-called "September Effect," the inclination for the market to fall (and fall hard) in September.

As this article from last year's WSJ reminds, September is a horrible month for stocks, not just in the US, and many real economic horrors have started during the month.

And you could also argue that this year will be worse than most. All year, we've seen an inverse correlation between volume and price performance (low volume = rally).

Given that August is likely to be slow (even for a slow summer), the comeback in post-summer volume could bring with it something wicked.

But... for now we won't talk about it. Enjoy the rest of your month.



Disclosure: No Positions