Chart of the Day 📈 7/30/25: Is it Time to Brace for Impact?

Mike Larson | Editor-in-Chief

It’s been a heck of a ride in the stock market. But is it time to brace for impact? With something unexpected and potentially treacherous?

The MoneyShow Chart of the Day might clue you in as to why I’m asking. It’s a table showing S&P 500 Index (^SPX) returns by month, courtesy of Topdown Charts.

Notice those red table cells in September? And the orange ones in August? That’s because the next two months are among the worst for the markets, historically speaking. In fact, September had the ONLY negative average return (-0.7%) in the 1964-2024 study period.

Yes, we’ve had some nasty moves in October. The market crashes in 1987 and 1929 easily come to mind – as does October 2008 during the Great Financial Crisis. But even that notorious month has shown positive returns 59% of the time – with an average gain of 1%.

I don’t know if August-September 2025 will buck the trend and turn out just fine...or if there are any below-the-waves obstacles lurking. But it couldn’t hurt to take some profits after the big rally we’ve had. Then you can park that money in cash to take advantage of potential bargains any volatility creates.

I wouldn’t call it bracing for impact. More like taking out some insurance!.

Longo: What Savvy Options Traders are Doing to Navigate this Market

The options market is experiencing explosive growth. But with options trading becoming more popular and accessible, many novice traders are making common trading mistakes that can impact their success. In this episode of the MoneyShow MoneyMasters Podcast, I sit down with Mark Longo, founder and CEO of Options Insider Media Group, to explore what savvy traders are doing to navigate this market.

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• SPX: Seasonality, Wild Speculation Suggest It's Time for Caution
  👉️ TICKER: SPX

  The bullish tone of the market has continued relentlessly over the last couple of months, while volatility has become increasingly compressed. But the probability of some corrective action is increasing. The key is participation with discipline, observes Lance Roberts, editor of the Bull Bear Report.

• Risk Off Signals Fire Short Term; Here's What to Do

  👉️ TICKERS: SPX, VLGSX, XLU, SPY

  The most notable development here is that my utilities signal flipped to “risk off,” meaning that both of my short-term signals are now indicating caution. It’s worth paying attention when this happens, especially when it flies in the face of the current market narrative, writes Michael Gayed, editor of The Lead-Lag Report.

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