Charts Suggest August Dow Rally, Regardless of Election Polls, Says Jim Cramer
Jim Cramer noted that the Dow Jones Industrial Average tends to rally in August during election years, regardless of which candidate is leading in the polls, as interpreted by chartist Larry Williams.
“The charts, as interpreted by Larry Williams, suggest that the Dow almost always rallies in August ... regardless of who’s ahead,” Cramer said. He highlighted that August is usually a poor month for the market, making this pattern notable.
Cramer acknowledged the chaotic election cycle, with President Joe Biden under pressure after a poor debate performance and former President Donald Trump facing a September sentencing on felony charges. He emphasized the significant differences in economic policy between the candidates.
“The charts, as interpreted by Larry Williams, suggest that the Dow almost always rallies in August ... regardless of who’s ahead,” Cramer said. He highlighted that August is usually a poor month for the market, making this pattern notable.
Cramer acknowledged the chaotic election cycle, with President Joe Biden under pressure after a poor debate performance and former President Donald Trump facing a September sentencing on felony charges. He emphasized the significant differences in economic policy between the candidates.
Williams’ analysis compared the Dow’s performance this year to its average performance during every election year since 1968. He suggested that focusing on larger aggregate data from every election year might provide a clearer picture of market behavior.
“In nearly the last 60 years, Williams sees two patterns: First, stocks typically do well in August, which is highly unusual. Second, stocks tend to get hit in October, before bottoming a week or two ahead of the election and then rallying again,” Cramer explained.
“In nearly the last 60 years, Williams sees two patterns: First, stocks typically do well in August, which is highly unusual. Second, stocks tend to get hit in October, before bottoming a week or two ahead of the election and then rallying again,” Cramer explained.
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