Let’s Look at Seasonality for April - InvestingChannel

Let’s Look at Seasonality for April

Still a week to go, but I was getting a little nervous and wanted to take a look anyway.

We know from this post from CXO what to look for at the beginning of April, but what about the rest of the month?

April Seasonality

Click on the chart to enlarge. Calculations start at the close of the last trading day of March and end on the close of the last trading day of April.

$SPX data goes back to 1928. $SPY data goes back to 1993. The two sets of data demonstrate how April seasonality has changed recently, if recently is over the last 20 years.

April Statistics for $SPY ($SPX)

  • Average Monthly Profit/Loss = 2.00% (1.12%)
  • Winning Months= 70.00% (60.00%)
  • Worst April = 2000 loss of -4.0% (1932 loss of -14.8%)
  • Best April = 2000 gain of +9.4% (1933 gain +31.0%)

Profit Distributions:

profdist

Equity Curve:

1_ Portfolio Equity

April returns since 2007 have been excellent. Last year was the first losing April since 2005. My belief in mean reversion has me betting that April 2013 will be a loser.

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