Today marks the 39th anniversary of Black Monday — the infamous 1987 stock market crash when the Dow Jones Industrial Average plunged more than 22% in a single session.
Now, I’m certainly not predicting another Black Monday.
But with the market already under pressure, momentum deteriorating, and stocks breaking to new lows, the timing is a little too close for comfort.
The markets have been all over the place.
And it reminds me of what happened right before the blow-off top back in 2000.
I was just a freshman in college, and it started in November and December.
But in the first four months of 2000, I made life-changing money.
It grew my net worth multiple times over (it was CRAZY).
This choppiness also reminds me that we’re in “crash season.”
When the market is like this, at this time of year, there’s only one thing to do… prepare now for what’s coming.
I’ve noticed that when there are a ton of plays, people say, “It’s fine, I’ll study later.”
But then, when things slow down, people don’t want to think about trading.
They don’t want to think about the market (and they STILL don’t want to study).
The problem with that is, when things heat up again, they aren’t any MORE prepared to capitalize on the plays.
Also, we’re dealing with seasonality, and you MUST be aware of it.
Why You Should Study Stock Market History
This is the time of year when the most stock market crashes have happened.
Too many people avoid thinking about it altogether…
I’m NOT saying there is going to be a market crash.
But it’s really important to have the right mindset and a little perspective.
Sometimes you have to go into protection mode.
Whether the market crashes or not, recognize that this is the time to study.
There will be opportunities regardless of what happens. But you have to understand seasonality and cycles.
Will you be prepared?
In case you don’t know seasonality, here’s a little perspective…
Three of the 10 worst months for U.S. stocks in the past 100 years were:
• October 1929
• October 1987
• October 2008
In other words, this is the danger time, okay?
September and October are considered the two worst months of the year.
We didn’t have a big crash in September. Again, I’m not saying we’re going to have one this month.
But the market is still close to the all-time highs it hit just a few days ago, right?
Guess what?
We’re due for a crash.
When you consider that…
• We’re probably going to get an interest rate hike.
• There’s still geopolitical risk, AND…
• The U.S. is kind of handicapped until after the midterm elections…
It’s going to be a VERY tricky next few days.
So, you don’t have to trade as much.
But also understand…
The Market’s Best Months Are Coming
Again, will you be prepared?
The honest answer for the vast majority of people is that you are unprepared to capitalize on big runners. You’re unprepared to capitalize on a hot market.
Take this opportunity NOW, while things are choppy and there’s uncertainty in the markets, to STUDY.
Especially as we head into November, December and January.
Look, if you put a gun to my head, I’d say we’ll either have a mini-crash or more consolidation.
But after that? Everyone gets excited about the new year, and that’s when things can get crazy.
During that blow-off top in my freshman year, I made nearly $800K in four months. Past performance doesn’t indicate future results, but it shows you that it is possible.
It was TRULY life-changing.
Every minute you put into studying now, while the market is choppy, will grow your knowledge account for later.
Lock in and study like you’ve never studied before.
If you promise to study hard to prepare for the market’s best months, shoot me a “YES!” message here.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
📣 Reader Spotlight: John H. is Studying!
“Hi Tim, thank you for this timely article, just what I (and many others!) needed to read right now!” — John H.
I couldn’t agree more, John! It’s definitely time to study. Thank you for your message! I love hearing from you.
If YOU want to share a message with me, comment on a Tim Sykes Daily, have a question you’d like me to cover, share your favorite pattern to trade …. I want to hear! Send me an email at SykesDaily@BanyanHill.com.
