SUMMER BLUES

Heat advisory all over the continental U.S. as temperatures may approach or even exceed 100 degrees. The calendar says August 1, so it really is not that surprising.

The good folks at the CXO Advisory Group have done some work on a monthly trading calendar and some of the data is quite interesting.

The work for the month of August shows a downward bias for the first 10 days, and a climb back near the flatline before month end. Of the 16 August's they reviewed, eight were higher and eight were lower and upon further review, its probably pretty bearish news as ten of the years included (1990-1999) were in the middle of a very bullish period for equity markets.

Overall, their testing has found that equity markets typically rally from the beginning of the year into July, fade into the middle of October and then rally again through the end of the year. Their site is terrific with lots of worthwhile stuff.