This article focuses on the seasonal affect coming up on the stock market and what wil happen in the next six months.

There will be no market correction but there will be a slight pull back in the stock market.  This is because of two things.  First the summer is over and September is always the worst month for stocks around the world. The second reason for the pull back is valuation based.

Just as the recession was overdone and stocks became largely undervalued after this rally stocks are largely overvalued at this point.  I believe momentum and lack of bad news is going to keep the bull trend running into the fall.  There is also the affect of the new short selling regulations.  These regulation make it harder to short stocks especially if they jump up unexpectedly.  This creates a larger than normal short squeeze from all the people that believed there would be a large market correction.  (My article a few days ago expressed why I said there would deffinitely NOT be a large correction in the market and it can be read here). 

Although the short squeeze and overall confidence will carry the market in a bullish direction this fall will be a great time to get into the market.  The month of September is a rally killer.  Overall it has been the worst month for stocks not only in th United States but around the world.  The chart below shows the S&P 500 over both an 18 year and 15 year time spans.  Looking at September there is always a severe pull back in stock prices.   

Read more in Investing
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Because of the seasonal affect in combination with the overpricing of stocks that is currently occurring there will be a decent sized pull back this fall allowing more bulls to pile into the market.  Over the next two years I am very bullish for the overall market especially the NASDAQ.  But as rallies carry stock prices higher than the companies valuation and intrinsic values says are appropriate this almost guarantees that stock prices will drop.  So get ready for perhaps a 5-10% pull back through the fall but at that point do not expect another collapse.  This drawback is merely a great chance to buy!

For a great article on the Health Care Sector and how it is being affected by Obama’s  reform click here.  This article discusses the best ways to make money on the potential slowdown in the S&P 500 and overall market.  There is one sector that is going to keep rising fast!

Also the price of crude oil is at a critical point in time look at this article which tells you how to see if prices will be going up or down and why.

Lastly this article which tells you bear rally or bull rally…how to make money.