During mid-term election years October, November and December have followed September as the three strongest months. Since 1930, the S&P 500 has gained an average of more than 2.5% in October, 2.0% in November and about 1.8% in December.

The Mutual Fund/ETF Actual Cash Account was started on August 29, 1988 (almost 26 years ago) with an initial $100,000 deposit. As of today, the real money account is worth a record high $1,386,957.

The Chartist takes a purely technical view towards the market. We base our decision-making process on the price action of individual stocks in conjunction with our proprietary indicators as well as many other widely followed technical indicators.

For the year-to-date, the Actual Cash Account is showing a profit of $237,063 +33.34%. Dan’s Aggressive Account is ahead $1,352,648 +32.20%. Over the same time frame the benchmark S&P 500 with dividends factored in has gained 30.7%.

What increases the upside odds is the fact that the market also has strong breadth and momentum going for it. As you can see by the chart, the Advance/Decline Line confirmed the recent breakout of other widely followed indices when it moved through its December highs with authority.

It could be but first off we should explain that purists would not call it a correction since the Dow and S&P 500 did not fall in excess of 10%. The S&P 500 fell 5.76% on a closing basis between January 15 and February 3, encompassing 12 trading sessions.