By Lawrence G. McMillan

We wrote about “years ending in 7” in the February 3, 2017, issue.  The data in Figure 5 is the same graph that was published at that time.  It includes data for the Dow Jones 30 Industrials, going back to its inception in 1897.  This  graph merely shows the average data points for all of those years.  

With this information, it is relatively easy to see a number of things.  First, one can see how the market behaves – on average – throughout the decade: it starts out relatively weak in the first year (ending in “0″) and is weak through about the middle of the second year (ending in “2″).  Then it rallies strongly from the middle of the year ending in “2″ through the end of the year ending in “3.”  Years ending in “4″ are flat.  Years ending in “5″ are the best years of the decade, and we have written about that as well.  Year “6″ is again flat.  Which brings us to year “7.”  There is a rally at the beginning of year “7″ and it carries into the middle of the year.  Again, these are “average” moves; what happens in any one year may not adhere to these averages…  

This excerpt was taken from the 7/14/17 edition of The Option Strategist Newsletter. Sign up today to read the whole article.

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