Have investors already seen the low for December (736 December 1) on the Venture? Very possibly!
Apart from having a much improved technical posture, after 7 winning sessions out of 9, and testing strong support in the low 700’s since mid-November, history shows that during bull market years the Venture’s December low often occurs during the first 8 days of the month as John outlines in the table below.
It has been 11 years since December 1 was the low for this special month in which seasonality strength always kicks in at a certain point. Historically, there has been no better time on the calendar to be a bargain hunter in this market!
Very soon, likely next week just before or immediately after the Fed meeting, a new Venture uptrend will start to gain traction. Prepare!
For investors who trade frequently, the December-January dynamic offers a great chance to pocket some impressive short-term gains by about mid-January when there’s often a pullback in advance of another push higher in February (overall, December-January-February are the best 3 consecutive months on the Venture with an average annual gain of 12.6% – greater during bull markets).
