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Low Volatility Might Help Stocks in Q4

Wednesday, 5 Sep 2012 | 4:00 PM ET

Low volatility bug you? It might be a help for stocks in Q4.

From Josh Dollinger at BTIG comes the following interesting nuggets:

1) Today (Wednesday) is the 22nd straight day in which the S&P 500 has not closed up or down at least 1 percent; this has only happened 10 times over the last 15 years and didn’t happen once from 1997 to 2004;

2) In those 10 times it did happen, the S&P 500 stocks were up 80 percent of the time 1 to 3 months out; when going out 3 months, the average return is almost 4 percent. (Read more: Stocks Mixed Ahead of ECB; Nokia Skids 15%)

3) helping all of this is that we are going into a seasonally strong period: in the last 84 years, the S&P 500 is up 73 percent of the time, easily outpacing the other quarters.

—By CNBC’s Bob Pisani

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  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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