After a miserable October, the setup for stocks in November is looking better

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November is the #1 month for the S&P 500. It's up 1.7% on average since 1950, and December is the third best month, so the seasonal setup is strong.

After a miserable October, the setup for November is looking better. Barring a huge rally on Tuesday, October will be the third consecutive down month for the S & P 500. That's unusual. Here's the good news: Stocks are very oversold and the bond market is acting like it's going to be difficult to get 10-year Treasury yields over 5%. That's very good news for stocks. Here's more good news: November is the #1 month for the S & P 500. It's up 1.

equity valuations," Colas said, noting that the S & P hit its highs on July 31 just as 1-year yields had climbed to about 5.4%. Yields on 52-week bills have sat in that range ever since.

 

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