Don't Ignore This Chart!

Here Are The Two Best Performing Industry Groups In August

Tom Bowley

Tom Bowley

Chief Market Strategist, EarningsBeats.com

The summer months can be very difficult for U.S. equities, as history has proven over time.  But there's always a bull market somewhere and the consumer electronics space seems to find a sweet spot in August.  There are only two industry groups that average more than 5% monthly gains during August.  One is the Dow Jones U.S. Consumer Electronics Index (+7.5% over the past 17 years) and the other is the Dow Jones U.S. Gold Mining Index (+6.3% over the past 17 years).  However, seasonality patterns over the subsequent two months clearly favor the DJUSCE as September is typically flat while October is easily the second best calendar month of the year for the group.  Take a look at the historical performance this century:


Those returns are significant and have occurred over many years so they're difficult to ignore.  One of the primary players in this space is Harman Intl (HAR), which currently sports a positive divergence on its weekly chart and could be primed to continue this seasonal pattern in 2016.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More