S&P 500 on a Winning Streak: 5th Straight Monthly Gain in the Cards?

 | Jul 25, 2023 13:39

  • The S&P 500 is set to rise for the fifth month in a row, historically a bullish sign.
  • Meanwhile, tech stocks are not the only ones thriving, as the Dow Jones Transportation and Homebuilders ETF have also hit 52-week highs.
  • And, investors betting against Cathie Wood through the AXS Short Innovation Daily ETF have lost big.

    • The S&P 500 appears set to rise for its fifth consecutive month, and that's exciting news. Looking back at the last 28 times this happened, it performed remarkably well:

    • One year later, on 26 of those occasions, it went up, showing an impressive average gain of +12.5%.
    • Six months later, it rose in 23 instances, averaging a solid +6.2% gain.
    • Three months later, it recorded an average increase of +3%.

    Now, remember, past performance doesn't guarantee future results, but it's definitely an interesting statistic worth considering.

    Meanwhile, the sector rotation has brought more stocks into 52-weeks high territory. Technology mutual funds received a substantial $1.8 billion in inflows for the fourth consecutive week, showing significant momentum over the past eight weeks, while the Dow Jones Transportation hit a 52-week high on Thursday, boasting a remarkable year-to-date gain of +21%.

    This index includes notable companies like American Airlines Group (NASDAQ:AAL), Avis Budget Group (NASDAQ:CAR), FedEx Corporation (NYSE:FDX), and Union Pacific Corporation (NYSE:UNP), among others.

    The diverse strength across various sectors has helped the index.