June has been a bearish month. This month is especially weak at this point in the election year cycle and in the decennial cycle. There are some stocks that are notable victims of this June swoon. Deere has fallen almost 70% of the time. Disney has dropped almost 65%, and Parker Hannifin has dropped over 70% of the time in months of June. Note that each of these stocks has been trading for over 40 years so the sample size is not small.
The trading recommendations are derived from the S&P 500 screen below. The first column is the seasonal rank for June. The second screen is that of the current relative strength. The third column is the combined rank. The table is inverted so that the weakest stocks are at the top.
Stanley Black and Decker has dropped more than 60% of the time in June. The relative strength rating is weak and has in fact hit a new low in the past week. The monthly histogram reveals that June has been the second weakest month of the year. On a daily basis, the stock is overbought. Share price is due to move closer to $110.
Stanley Black and Decker Dai
Stanley and Black and Decker Monthly Histogram
Disney is due for a pullback. June is the second weakest month of the year. Share price is overbought, and relative strength has hit new lows. Over the last 42 years, the share price has fallen about 75% of the time from June 7th to September 25th. The stock could move closer to $105 over the near term and lower into autumn.
Disney Daily Graph
Disney Monthly Histogram