MarketWatch writes article about Brace for the worst week of the year:
By Sue Chang
Published: Sept 18, 2015 5:11 p.m. ET
Historically September is a bearish month
By
SueChang
Markets reporter
History does not favor stocks in September.
This was supposed to have been a banner week for stocks with historic
data pointing to a very strong finish for the market. That was before
the Federal Reserve blinked.
Instead, uncertainties in the wake of the Fed’s decision to keep
interest rates unchanged triggered a selloff, dragging the S&P 500’s in
the red for the week.
‘Considering the past 10 years this current week was one of the best,
the fact this week sold off hard late in the week is a clear concern,’
financial blogger Ryan Detrick said.
Making matters worse, data dating back to 1950 indicate that next
week will be the worst of the year, according to Detrick.
‘Historically, September is one of the most bearish months,’ he said.
‘Most of the big drops took place later in the month,’ he said.
In another harbinger of gloom, markets have closed lower on Fridays
42.9% of the time so far this year, one of the lowest ‘win percentages’
as investors clear positions ahead of the weekend. Detrick noted that
weak Fridays tend to result in bear markets.
The Fed on Thursday cited global headwinds for holding interest rates
near zero, spooking investors and sowing confusion.
The confusion stoked a rout in stocks Friday, with the Dow Jones
Industrial Average DJIA, -1.74% tumbling by nearly 300 points.
The main culprit is the question, ‘How bad are things out there that
the FOMC is scared to raise rates 25 basis points,’ said Ian Winer,
director of equity trading at Wedbush Securities.
MarketWatch Article Source Here.