Over the last 25 years, the two strongest months for Nasdaq have been in July and October. However, the weakest months come in February, August, and September.
So, investors should watch out for potential weaknesses in the coming months of August and September from a seasonal perspective. This backs up the market maxim that the summer months tend to be weaker, but notice how the second strongest month of the year for the Nasdaq was actually in July from a seasonal perspective.
Major Trade Risks: The main risk here would be that seasonal patterns do not always repeat themselves.
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