While the stock market is in many ways unpredictable, it has been host to trends during it history.

Some of these patterns repeat during certain months of the year and offer some explanation for otherwise unusual trading behaviors. Certain trends are welcome while others are feared, and, while there are exceptions, investors can expect, with some degree of certainty, that market characteristics will emerge based on the calendar month. Investors can attempt to profit from investments at the start of the year as a result of a trend known as the January Effect, which is a theory suggesting that the market values of stocks rise in the first month of the year.

Indeed, in January, small-cap stocks generate average profits of nearly 8 percent compared with a paltry showing for returns during the rest of the year.

There are essentially two ways to approach the month of May: Hunt for buying opportunities or sell holdings with the rest of the investment community. The adage that market participants generally adhere to leading up to the summer is to "sell in May and go away.

October is one of the worst months for stock market performance on record, second only to September. Nonetheless, nearly half of the stock market's worst trading days occurred in October, according to a article on the CNN Money website. Included among the most damaging stock market crashes was the notorious meltdown of , when the Dow shed nearly one-quarter of its value over two trading sessions, leading to the decade-long Great Depression. Stocks generally receive a boost at the end of the year from what's known as the Santa Claus Rally.

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This buying activity occurs during the holiday season beginning on Thanksgiving and lasting through the end of December, which is how this trend got its name.

Based on years of research, the Dow advances nearly 80 percent of the time during Santa Claus Rally periods, according to information gathered by Marco Dion, a J. Morgan analyst, cited in a article on the CBS Money Watch website. Geri Terzo is a business writer with more than 15 years of experience on Wall Street. Throughout her career, she has contributed to the two major cable business networks in segment production and chief-booking capacities and has reported for several major trade publications including "IDD Magazine," "Infrastructure Investor" and MandateWire of the "Financial Times.

Terzo is a graduate of Campbell University, where she earned a Bachelor of Arts in mass communication. Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.

This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. These returns cover a period from and were examined and attested by Baker Tilly, an independent accounting firm.

Visit performance for information about the performance numbers displayed above. Skip to main content. More Articles Seasonal Stock Market Trends Daily Stock Market Trends January Stock Market Trends What Is a Good Source for Stock Market Projections? Anticipatory Stock Analysis The Impact of Stock Trading on the National Economy. January Effect Investors can attempt to profit from investments at the start of the year as a result of a trend known as the January Effect, which is a theory suggesting that the market values of stocks rise in the first month of the year.

May Selling There are essentially two ways to approach the month of May: October Crash October is one of the worst months for stock market performance on record, second only to September. December Rally Stocks generally receive a boost at the end of the year from what's known as the Santa Claus Rally.

References 4 Market Watch: How to Play The January Effect Market Watch: Wish That Could Go Away CNN Money: October -- The Scariest Month for Stocks?

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Stock Market Looks Set for a Santa Claus Rally. Resources 2 New York Times; A Short History of the Great Depression; Nick Taylor Library of Congress: The History of the New York Stock Exchange.

About the Author Geri Terzo is a business writer with more than 15 years of experience on Wall Street.

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