Historical Technical Indicators Point to a Bullish December: Believe it or Not BBD is Still a Buy

James | Dec 01, 2009 | Comments 4

With December coming up around the corner many are speculating how the markets will end 2009. I am still questionable and cautious on how the year will end though if we think history usually tends to repeat itself then we could be heading into a bullish month and the best of 2009. Why read and find out?

- In the past, years where the first 11 months have yielded good returns, December has been one of the strongest. The last few years have been a roller coaster on Wall Street however since March the S&P 500 is up over 67% boding well for good old December.

- On Average December is one of the Strongest. Yes looking through the charts, graphs, and data over the past 35 years December has doubled the average return of the monthly average 1.7% vs. 0.8%. With the S&P monthly average at 2.2% for the year and 7.5% since March it points to an explosive December rally.

So yes these technical indicators point to a strong month but fundamentally where should you invest?

Sector wise Banks historically have always outperformed in December. Building on this I think retail will continue to exceed expectations along with Engineering and Construction stocks.

Want a stock specifically to invest in?

Check out Banco Bradesco SA ADR (BBD). It is a Brazilian Bank with loads of potential. Why? Tune in later this week and read the full report on BBD. Otherwise lets hope the technical indicators are right this time and we can end 2009 with a bang and some money in our pockets.