A twenty-year look at the average gains and losses on a monthly basis shows some interesting standout observations. 1 March is the seasonal beginning of market gains, which runs until 1 May. The seasonal average chart confirms the “sell in May and go away” view.
Everyone remembers October for the crash, whereas often it is one of the better months for index gains. This is only followed by December, which is often referred to as the Santa rally. But a keen observer would see retracement before the rally as an opportunity to enter the market at lower prices.