Market Timing Research

How to use Factor Seasonal Charts to Improve Your Trading and Investing

Archive for the ‘S&P 500’ Category

Alcoa Seasonal Forecast – January 9, 2012

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Written by Market Timer

January 11th, 2012 at 1:24 am

Posted in S&P 500

Dow Jones Seasonal Forecast for January 2012

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Written by Market Timer

January 11th, 2012 at 1:23 am

January 2012 Forecasts – Jiggles

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Our January S&P100 and NASDAQ100 newsletters just went out with the charts of the best stocks to trade for the month, and the ones to stay away from. Here are our two charts with our famous orange forecasts for January. As you can see, expect jiggles ahead.

Remember, the charts do not reflect a proper scale UNTIL we get the first prices of 2012 coming in. Then we start with a zero y-axis. So while it looks like we are forecasting higher prices, for we are not. That’s simply the mathematics of appending one seasonal forecast on top of another and projecting it into the next year. What you should be looking at is the PATTERN FOR JANUARY only. As stated, after we switch to 2012 prices, then the charts will just show the anticipated pattern for the year without what looks like the assumptions of much higher prices.

Will prices go up in 2012? We only make adaptive forecasts month by month. Historically the second year in a decade usually increase by slightly over 23%, but who can tell with all the Euro troubles and the worries running around about a bank holiday.

Learn more by subscribing to our newsletters.

Written by Market Timer

January 2nd, 2012 at 11:09 pm

Posted in S&P 500

GE Finally Has Buffett Smiling, But Are the Troubled Waters Over?

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GE has caught the world’s notice … This past week, GE’s CEO Jeff Immelt gave an optimistic 2011 growth forecast for the firm after so many struggles. The global economic crisis, he said, has helped force GE to get back on track with its core businesses. Immelt confirmed one of our primary thesis points: China will be one of its key areas for growth. You should look at all your stocks and evaluate who is doing what in China, India and Brazil and well as the upcoming N-11 countries and African frontier markets, for these are the future. Long term grwoth and investment opportunities are in THESE markets, not the US.

Buffett and GE go back a long way because in the 2008 market collapse Buffett provided $3 billion to GE in return for preferred stock and warrants to buy $3 billion in GE common shares. GE’s stock hasn’t shown a dramatic recovery, and now the company is reporting that 2011 finally looks rosy. But as to the stock price…check the seasonals.

This does not mean that this will come true because a roraring bull can throw all these projections aside. However, you should be ready. Furthermore, whatever happens, Spring will definitely be a great time to pick up shares if the seasonal holds true. That’s what seasonals help you predict.

GE - General Electric stock price forecast chart

Written by Market Timer

December 19th, 2010 at 10:16 pm

S&P500 December Seasonal Forecast

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And so the first month of QE2 is over with interest rates rising a bit and the stock market dropping for the month. However, in all likelihood QE2 will help raise the markets just a little bit more, and seasonals suggest that December will be an upwards month as good news floods in about internet sales and the solution of other worldwide crises.

Cycles analyst Charles Nenner of the Charles Nenner Research Institute had predicted that December would be a short term cycles low in the stock market, but it may be that today’s rally shows the kick-off has started earlier. Nenner also feels that we will see a collapse in equity prices in mid-2011, possibly due to deflationary forces or other reasons, and then eventually DOW 5000. Elliottwave technician Robert Prechter ultimately sees DOW 1000.

We don’t have any crystal balls but do agree that the markets will be testing the 2008-2009 lows next year, with a bottom in either 2012 or 2015.

But what does that mean for trading? Nothing at all using our methods. We pick stocks that have a fundamental story, apply the seasonals on top of them, and then make judicious trades. Let me provide an example to show you what I’m talking about, but first the S&P500 forecast:

SP500 Composite Index

Here’s what I mean about stories…

Many macro players are citing the fact that world growth will deplete our resources, and therefore there will be demand for more COAL and NUCLEAR energy. Okay, let’s check the seasonals for PKOL, a global coal ETF and NLR, a nuclear power ETF. We have a fundamental view, we want to get in, but we are worried about the timing. Should we get in now?

Let’s do our research …

PKOL Seasonal Cycle

NLR  Seasonal Cycle

Form these two charts, you can see that there is not a lot of past history to build accurate seasonals to go on. With the little data we have, December looks like it could see a continuation of the push upwards, but then there may be a drop in prices come January. If you are a short term trader you have the potential of a December pop, if it’s in your outlook, but for a long term investor you might want to wait and see whether there is a January correction so you can get itno a position (or add to one).

Since we would be long term players here if we are following long term fundamental analysis, we would be looking to get in on a drawback, so the charts would behoove you to wait. If we had 5 years of data we would be able to be more definitive but this is the best we can do with so little data.

If you had a lot of data you’d say: “I’m bullish on Stock XYZ. The reasons are –, — and –. I want to get in. Let me see if the seasonal says now is a good time or whether I should wait.” If you are already in, late December I would raise my stops or possibly sell calls. It would depend on the strategies you are used to using and your view of the market at that point in time.

So even though there are only two years of data, from so little seasonal data you still get an inkling as to how to use seasonals to help with your trading and investing. But once again, you want 5 years of data or more.

If you are following some options hotline, ALWAYS screen the trade past the seasonals and I’m sure you’ll cut down on your losers and find better places to take profits on parts of your position. You could make a living trading options off the seasonals and some momentum indicator alone that triggered trades to look at. This is just another way for using seasonal analysis to cut your risks.

Written by Market Timer

December 2nd, 2010 at 1:39 am

How to trade stocks (Pfizer in this Example) using Seasonal analysis

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People always ask me how to make stock picks or how to trade stocks using seasonal analysis. Well our August newsletters came out over the weekend, I went through the charts and selected several buy and sell candidates, and then got in on Monday for the stocks that I thought had already proven their seasonals.

You don’t always get in on the first day of the month. It was just that some stocks had proven their seasonal lows just prior to the new newsletters. For other stocks the newsletter shows that I should be waiting for trend changes in the middle of this month because they tend to make some V-tops and bottoms. So those go on the watch list and I have plenty of time to evaluate them.

In any case, Pfizer (PFE) was one of the stocks I got in for the retirement account. It’s a short term trade I’m only expecting to hold until September, and if it beats 2% for CDs I’m doing much better than even most portfolio managers, and that’s what seasonal analysis can often do for you in terms of stock picks. In this video you can see the chart, how I selected it, and a SURPRISE … I wake up the next day and PFE had an upside gap due to an earnings announcement well beyond expectations, so the price action in following the seasonals were forewarning of that. Just like our AMZN trading video, these unexpected great moves happen time and again when you start using the seasonal charts for your trading. It might not happen this month, but you get the newsletter month after month and eventually those trades happen for you as you get better at stock selection.

In other words, this video shows you what you get from our newsletters and how to use them to select stocks on both the Buy side and Sell side. Stock pickers love this. Clear signals if you want to buy stocks and sell stocks. Just look for:

    1. The green line (ordinary seasonal) and orange projection line (factor seasonal) both head in the same direction
    2. The correlation number in the upper right corner is around 70% or more, or the chart looks so good that you can ignore it
    3. The expected move is big so I have a good chance of making money (though I often trade small moves for 5% or so if the move is consistent on both the green and orange lines with a high correlation and Factor Seasonal support; 5% beats 2% CDs for a year of money sitting in the bank or money market account)

Written by Market Timer

August 3rd, 2010 at 2:16 pm

2 Bearish and 2 Bullish Trade Examples for August

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I just completed our August newsletters for the S&P100 and Nasdaq100, and thought this would be a good time to show you how to use our newsletters to pick trades. No other service does this for you.

Now see our legal disclaimers to understand we’re not recommending you buy or sell these stocks, nor are we investment advisors, etc. I’m just showing you how each and every month you get 20-30 great trade possibilites, and usually 8-12 (or more during the early Spring and late Fall) stellar setups. So this is not a recommendation to buy or sell shares, nor is it a guarantee of profits or investment success. It’s sort of silly you have to mention this all the time, but it’s the legalities of the world today, and we suggest you read our full TERMS and DISCLAIMERS.

That said … once you have our Factor Seasonal price charts, you can go long, short, buy puts or calls, or whatever your normal investment or trading strategy happens to be after you find a forecast of interest. When the orange projection line and green ordinary seasonal agree, the trend is strong and worthwhile, the correlation with past price action (in the upper right corner) is 70% or higher, and there’s factor seasonal support, those are shares we like. So we don’t interfere with your strategy or try to teach you to be something you aren’t but simply find those setups for you that fit your trading style. These newsletters are perfect for finding you the trading opportunities you want, even if you are a day trader.

I tend to have an equal number of longs and shorts in volatile environments, but then  nearly 100% long or short when the trend becomes crystal clear. How do I pick my trades? I find perfect seasonal set-ups, like this video shows, wait for price action to trigger a MACD, tendline break, or Fisher transform crossover, and then take a position. Simple as that. Some win, some lose (no method is perfect), but at least you are stacking the odds in your favor.

Watch to see how I do this…the stocks being analyzed (we do the analysis for you so you only have to pick the stocks you want to trade) are MO and  CELG on the bullish side and RYAAY and JBHT on the bearish side.

Written by Market Timer

August 2nd, 2010 at 3:57 pm

You Can Predict the BP Stock Price with Factor Seasonals

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Everyone wants to know what the BP stock price will do. Will British Petroleum stock prices fall further? When is it safe to pick up the BP assets at a low? If I’m a trader, do I risk trading it on the bullish side now?

We cannot tell you the answer to any of these questions. No one can. We can only tell you that BP, despite the problems, is finally following its ordinary seasonal chart once again, AND … and this is a big AND … is also follow the bullish monetary conditions Factor Seasonal chart. Both point up for the near term! You can see the correlations and price predictions below (and you can check below to see our Factor Seasonal rice prediction for these volatile shares was impossibly correct from last month, which happens quite a lot):

BP stock price projection using seasonal software

British Petroleum stock price under bullish monetary conditions


So what do traders and investors need to know about our Factor Seasonal approach?

Let’s summarize the Factor Seasonal approach once again so you understand how it works. Once you look at the pictures and see the explanation, it becomes a commonsense must-have way of investing or trading. We are using the BP stock price simply as an example. But as stated, if you want to see how accurate we sometimes are, check this previous BP stock price seasonal prediction we did last month. Who could make such accurate predictions like this? We can! We do it all the time in each and every newsletter so check us out.

Basically there are two different types of approaches to seasonal trading: the investor and the trader. Both can benefit from our Factor Seasonal newsletters and software. I don’t care if you call this technical analysis or fundamental analysis because it is BOTH. It’s one of the few methods in the investing field that falls into the arenas of both technical and fundamental analysis because of its unique methodology.

Now the stock market investor looks to buy positions and … he/she wants to buy low and sell high. He or she selects stocks based on value investing concepts, fundamentals, earnings outlooks and the like.

We say “great” to that, but also say that once a stock passes your fundamental screening criteria, put it in our software or check the charts inside our Factor Seasonal newsletters. Just like with the BP stock price charts above, you’ll immediately see the probable time of year you’ll likely find a stock making a low like British Petroleum stock (or high if you want to sell). Trust me – you’re likely to avoid many catastrophic investment mistakes this way because I have.

With our newsletters and software, you’ll be able to weed through hundreds of stories playing 24 hours a day from useless talking heads on TV pushing this or that share. Remember, there are thousands of analysts in the US and how do they fare? Most mutual funds don’t beat the market and for the last 10 years the stock market return has been net zero, and which talking heads or analysts predicted that? However, they might have made good chunk of change with the approach I’m going to teach you. You decide…

Now the standard advice, which is sound, is don’t just jump in and buy shares because you see a stock in the news or because there’s a bullish earnings report or new earnings estimate. A big part of the game of making money in the stock market is NOT trading or investing according to emotions but looking at analysis, and I’m going to show you how to tune out the “smack talk” from TV.

The Factor Seasonal approach helps you calm your tendency to over-trade, and gives you courage to act when you want to buy, too. This is the only form of analysis, other than cycles forecasting, that gives you a clear picture of predicted stock directions. In fact, since it’s based on the repeatable company economics that become incorporated into stock prices, it’s a little more reliable than cycles since they are just based on prices alone without any tie to fundamentals.

With these charts on the BP stock price, we can see that the seasonal low might be in, and BP has somewhat turned around. However, according to the charts we can also expect a drop in September, as you can clearly see. We’re not saying the BP stock price will follow the pattern exactly (even though we have an outstanding track record of accurate projections from our software), but many stocks actually do turn when predicted a significant portion of the time … even despite wild market volatility … and you can use that fact to your advantage to make money.

We’re simply using British Petroleum to introduce the concept of Factor Seasonal trading. It is truly the first really new thing in technical and fundamental stock analysis in a long time and since it isn’t popularly known yet, the early bird gets the worm. How are people using it? They do all their other analysis and then as a final sieve, run the stock through a Factor Seasonal analysis filter before pulling the trigger on a buy or sell order. What you see will tell you whether to act now or wait a bit. The Factor Seasonal newsletters are like a magic stock charting machine that helps you anticipate what to expect in the upcoming price trajectory, and therefore it helps you manage and balance your trading risks. No longer are you flying totally blind based on just earnings estimates and analyst numbers or relative strength figures alone. Now you have more, and a clear expectation of a stock’s flight path …

I am finding indications that some large investors and fund managers might already be actively using some type of seasonal price trading approach (without the factor seasonal economic charts, of course) IN A BIG WAY because when we identify shares that triggered a MACD signal today and then check them the next morning, in many cases the stock runs up immediately from the open because of all the buy orders, and experiences an incredible run-up the rest of the day to complete the first leg up of an anticipated large bull move. It’s happened so many times that I’m wondering if some top hedge fund managers have discovered part of our secrets.

Let me explain the basic methodology of Factor Seasonal trading/investing a different way to help make it more clear. Today or tonight, you screen for stocks that just had a MACD (or other system) buy signal. Next you check those stocks against the seasonal chart (we also check it against the Recession/Expansion and other Factor seasonal charts) to see if the trigger is at the beginning of an important run-up, or just a price blip or whipsaw you don’t want to be trading.

If a big run up is expected dead ahead, the next day you can trade (if you choose to act on those shares and that signal). In our case, through tons of research we have come up with what we believe is the very best way to create the correct price seasonal chart to identify the correct trading periods (and a unique technique it is), AND we confirm the price expectations we develop with fundamental Factor Seasonal charts to further put the odds in our favor and weed out stocks that might go down or simply won’t perform.

No one else is doing this, which is why a newsletter subscription may be of interest. Frankly we like action, quick action, and you can get the set-ups for high extreme bullish moves from our monthly newsletters quite easily. Just like in the BP stock price charts above, you can’t miss the shares of interest one you glance at the patterns, and it’s easy to dismiss trading this or that share during a difficult period.

Everyone is all the rage on Apple at the moment. The news is AAPL, AAPL, AAPL because of the ipod, iphone, ipad, iTunes, apps and more. Well, resist the tendency to join the crowd. Be a contrarian and wait. Trade or invest in something else that looks better with a stronger seasonal for the immediate period ahead. Check the seasonals first before you trade …

Seasonal price chart for AAPL stock

If you filter the stocks that pass your tests of

[1] having a MACD trigger and
[2] significant immediate seasonal pattern up-rise with
[3] some type of relative valuation estimates also (IBD ranking, Vectorvest, FusionIQ, etc.),

then you have a nice way of stacking confirmation upon confirmation upon confirmation.

As I said, it’s not about the excitement of trading off news, but about making money, period. This methodology will blow your socks off once you get started and master the technique. As we joking say in one of our sales pieces, it’s a method for becoming a “stock market wizard” because we believe it truly is. But that’s just us.

I had a conversation with a newbie investor the other day and I told him if I was starting out, this is the one thing I would do. In fact, you could even go market neutral and buy stocks with bullish Factor Seasonals, and short sell those with bearish Factor seasonals, and not be risking too much if I was truly market neutral.

Even simpler, I would look for a technical trend following signal before I’d consider purchasing a stock. I’d run it past the Factor Seasonal price expectations to rule it out or rank it as to run-up potential, with steep up curves better than gentle slopes. And if I used a ranking system for stocks (relative strength, earnings strength, etc.) I’d use that too, though I make pretty good money with just the first two steps alone. ThinkorSwim.com has free software that will allow me to screen for MACD signals every day, and other free screening software is on the web, so the first step is covered. We’re the second step. The third step is optional but yet another way to help stack odds in your favor.

You don’t have to trade or invest all the time this way, but once you see what you can do with our newsletters and software, I’m sure you’ll be hooked and this will become part of your bag of must-use tools for out performance. I’m CONVINCED it will be so. Here’s the best way to get started with us at the moment: The Seasonal Cash Flow Trader Package.

Now for traders, what you do is use our newsletter to anticipate the likely trend of a stock of interest. The price seasonal projections are stage one of this process. The Factor Seasonal trends are stage two. When they both head in the same direction, FANTASTIC – all things are confirming one another. Odds are double stacked in my favor. If the two don’t confirm, I pass and go to some other share. Why? Because I don’t want to risk it when there are plenty of other opportunities around.

In fact, this method is the quickest way to rid yourself of impatience because you’ll always find other stocks to replace the one that isn’t quite perfect for the risk. That’s what you want. That filtering ability provided by the Factor Seasonal charts is a blessing from heaven, and has kept me out of so many losing trades I can’t count anymore. There’s always another stock with great Factor Seasonal set-ups, so I don’t sweat that I’m missing out on anything anymore. There’s no pressure to have an itchy trigger finger, for this is a more relaxed, Jimmy Buffett style of trading and investing. Yes, you can do this on the beach because it is so simple. Just open up our latest newsletter, immediately find the stocks where there is a bullish or bearish setup of interest, and then follow it for a MACD, trend line break, or other price trigger signal. And as I said, if there are several stocks of interest, you can rank them by the size of the coming anticipated move, or by some valuation rating offered by other third party newsletters.

So “passing” on a stock doesn’t mean don’t trade it or that it won’t go up, just that I’m looking for stocks that just triggered buy signals right in front of a historically repeatable BIG seasonal move. You’ll find many stocks that trigger BUYS right in front of seasonal up moves, but I rank them according to the SIZE of the anticipated bullish move and put more money on the big up-moves rather than small up-moves. This is how options traders use our services, too.

If all the indications line up for bullishness, the way I work it is to trade that share on the long side. Of course you can buy options, or sell puts, or do whatever you like according to your own style. We just supply the charts and the technique. We just help you visually find the true trend because moving averages and other technical techniques don’t give you price trajectory projections or any other methods we know of. Look at the previous BP post and the current BP stock price charts to understand what I mean.

In fact, if I’m bullish on the market I only get into shares that just got a BUY signal on a MACD or some other trend following system (a trend line break, Fisher crossover, etc.) and after checking with the software you get upon a subscription, confirm that the seasonals are pointing up. Not just UP … I want the chart significantly UP steep, Steep, STEEP. I want to be stacking all the odds in my favor and want to invest in stocks that I expect a big bull run on.

So day traders, who usually just trade momentum and volume breakouts, can use our newsletters and software to have an idea what direction to trade, which is a way to further stack the odds in their favor.

Does this work? Not always (nothing always works), but often in spades! And if you’re trading options, this is one of the best things you’ll ever find in your trading career for risk managed set-ups.

Forget about the BP stock price, because British Petroleum is simply a controversial stock where no forecasting/projection techniques should work (except ours, of course, which you can come to count on month after month even with bear markets and high volatility environments), and I’m using it to grab your attention and illustrate how I trade using Factor Seasonals. You’ll have your own technique once you have our newsletter and software tool in your hands. Just look at the picture of the BP stock price and imagine this for hundreds of shares. Tell me you can’t figure out how to use this inside information!

Every night I scan the NYSE and NASDAQ list for stocks that just had a MACD trigger, either up or down. Then I put those stocks through my seasonal program (you get a mini-version of the program when you subscribe to our Seasonal Cash Flow Trader Package ) to see if the seasonal trends are also confirming a near term UP or DOWN scenario that matches the signal.

If not I PASS because I want to make money, and making money means managing your risks and stacking the odds in your favor. I want double whammies when I’m risking my money. Countless times what looks like a breakout is a false whipsaw that the seasonal charts screen out for you.

That’s it in a nutshell. That’s how I trade, and you can see a great example of an unpredictable stock becoming somewhat predictable using our proprietary Factor Seasonal approach. That happens a lot with the Factor Seasonal approach, and it’s how I make my money. The BP stock market example illustrates the technique. I threw in Apple Computer to show another way of navigating those trading waters. Every month the predictions change, shifting forwards or backwards until they converge with reality, and that’s why a monthly subscription is so valuable to you.

So here’s a Special, Limited Time only offer. For a limited time only we are introducing the Factor Seasonal approach to the world, so we are bundling our NASDAQ newsletter of seasonal analysis projection charts, our S&P100 newsletter and Dow Jones newsletter together WITH a complimentary boiled down version of our software so you can do this on your own. We’re offering a tremendous price discount but will raise the price significantly right after we’re done with this introductory offer. You can find the deal at Seasonal Cash Flow Trader Package. If you like what you see and can imagine yourself scanning a chart book of upcoming seasonal patterns every month, and tapping the stock symbol into a piece of software that will pull up a rudimentary projection chart, then we’re here for you.

Be sure to take us up on our introductory offer while it lasts…I suggest you examine the BP stock price charts to once understand what this method is all about and if you agree that it makes sense to go with the trend and bet on bullish seasonals when the market goes up and bearish seasonals when it goes down, then we’re for you.

Written by Market Timer

July 23rd, 2010 at 5:09 am

Forget a Solution from Obama

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In our Dow Jones newsletter and S&P100 newsletter, we like to talk about the big picture and heavy duty industrial America. The frank truth is that the U.S. economy is in shambles and Americans will continue to see high unemployment and lower living standards for years to come. The bond market is telling us that  hard economic times lie ahead and that deflation is a bigger threat than inflation, which is a risk the FED has recognized since it’s trying to inflate us out of this mess, which it can’t do. China is having its own problems in supporting itself as well as the world economy, the PIIGS (Portugal, Ireland, etc.) are in trouble, and debt deflation  all over the world threatens social stability and a deflationary whirlwind.

No doubt about it in our minds – 2011 will see an intensifying of the recession we’re still in.

As to President Obama, he looks great and can confidently read from a teleprompter standing tall, but speech after speech is just empty talk. The Afghanistan war was a no-winner from the start as any historian will tell you that no nation has been able to conquer and pacify Afghanistan. President Obama’s one big success – a medical health insurance plan is likely to add costs on top of a besieged public when fully instituted. All this chaos started from a housing bubble, and a housing bubble originated with from loan crazy banks who decided it was a great idea to make loans that weren’t great because they could sell them and not have to keep them on the books. Wall Street went along with it, no one said anything about the lack of ethics and morals beneath this strategy (because they would have been relieved of their positions), and these were the guys who wrecked the world economy but kept their jobs.

As to the present job market which is suffering from the after-effects of this shock, for every new job there are now six applicants. Construction and housing production, which usually brings up the jobs totals, are down as is consumer spending based on credit. That means commercial real estate is in trouble because fewer people are shopping as freely as before, and so the malls are empty. Because nearly 70% of new jobs are created in small business, the fact that small business cannot borrow doesn’t help either. In terms of the long run again, since there is a lot of competition for job positions, employers can offer lower wages and young people entering the work force today can expect to make less money in their lifetime than previous generations, hence a lower standard of living into the future. Let’s not mention that housing production is at a 50-year low and vacancies and foreclosures are up.
 
So look at the headwinds coming over this next half year to year: (1) a slowdown in the U.S. as the Obama stimulus package fades, housing remains weak, commercial property is hurting as people are not spending, local and state governments will have to reduce wages, layoff workers and raise taxes, … sustainable jobs are not there because there’s no driver (2) austerity measures take hold in Europe, cutting wages and spending (3) China looks to dampen its own housing bubble, and is starting to face wage pressures, too.

Back to the U.S. … remember that ultimately it all comes down to jobs; it’s not much more complicated than that. Without a jobs recovery, there will be no consumer spending recovery (especially with declining wages), and without a return to previous consumer spending patterns (which is unlikely now that consumers are skittish about credit card debt), there’s little reason to be excited about the economy and thus the stock market. You can expect to see yet more vacancies at U.S. shopping centers and malls empty of fat wallet foot traffic. Of course, let’s not talk about the BP oil spill and its effect on businesses either. 

The bottom line is, if you look at the market over the last ten years: you’re at a loss. That’s the bottom line. A few greats, such as Tom Bogle (Vanguard funds)  warned several years ago that we have to lower our expectations.  We had a very poor decade in the 1970s; you know, where the real return on stocks was probably 1 percent per year or something like that. The 80’s and 90’s spoiled us with double digit real returns.  I once did a study of the long term gains of dynastic families such as the Vanderbilts, Rockefellers and Krupps of Germany. Their long run rate of return was 7-8% per annum. That’s all. You cannot expect that into the near future. Not at all.

The only solution for investors is either to put your money in bonds, paying zilch, or be nimble to trade in and out, going with sure things or lined up as much as possible.

Enter the era of the factor seasonal trader.

I want safer buys and sells. When the market is going down, find me shares where the stocks seasonally get hit as well because those economics are bound to be double down, and with volatility and risk rising, I want the safest trades and trends possible. Same for the bullish side — if it’s a bull market, put me in stocks where the seasonal normally heads upwards and the stock is following that seasonal, showing that earnings are following along with expectations for this cycle. That’s the seasonal trader approach.

If you just want to buy low and sell high, just use our chart books to determine when stocks normally have a high or low for the year. Once again, if a stock isn’t listed, that means none of the techniques that we use is able to match the past with high reliability, so we don’t make a projection. That’s common sense…who wants to mislead you? 

That’s the Factor Seasonal Approach.

All I do is scan my watchlists for MACD signals, pop the stocks that trigger into my trusty factor seasonal program (you get a boiled down version of the program for PCs with a subscription to our Seasonal Cash Flow Super Package) and then buy or sell, OR EVEN GO MARKET NEUTRAL, accordingly. I can watch stocks via the FusionIQ rating system, Value Line ratings, VectorVest rankings, IBD ratings … and then act accordingly. Makes more sense then what most analysts are doing when forecasting the short term.

Written by Market Timer

July 15th, 2010 at 8:34 pm

Posted in S&P 500

Some More Bullish and Bearish Seasonals

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Here are some more bullish and bearish seasonal charts from last night. If you are bullish you should favor the bullish charts for your watchlist, and if bearish the bearish charts. When it’s a bull market, the bullish seasonals tend to do very well and when it’s a bear market, the bearish seasonals tend to do well. You double stack the odds in your favor when you go with the flow, which is what a Seasonal Cash Flow Trader does.

Every month you get a list of such stocks, and their charts, in our Factor Seasonal newsletters. But here’s the KICKER. In our newsletters you not only get the best seasonal price projections (because we determine the right number of years to use in the projection charts, which we haven’t done here), but you also get stocks filtered by the fact of whether they do or don’t have a Factor Seasonal chart thats supports the projected price move. In other words, they’re filtered by the fact that their fundamental price behavior in similar types of economic environments ARE SUPPORTING THE PRICE MOVE PROJECTED.

Can’t beat that type of fundamental, inside information. You can pick stocks to buy or sell just from the price charts alone, but when you filter those charts by whether the stock has an underlying fundamental tendency to do the same thing, you’ve got gold.

That’s the Factor Seasonal approach to stock picking. If you’re a day trader or longer term stock picker, you want to have lists of these stocks because they offer the most volatility on the upside and downside. This is where the money is to be made.

Don’t fly blind. If you’re a fund manager or investor, always check for Factor Seasonal support first.

Written by Market Timer

June 24th, 2010 at 1:12 am