How to use Factor Seasonal Charts to Improve Your Trading and Investing
Market timers love charts, and every now and then they like to put up the decennial cycle, which is finding the stock trading pattern for taking every 10th year. Well, we like to put all such patterns against our best projection line. In our newsletters, on the blog, everywhere we said that the end of May would probably see a bump UP in prices due to seasonals, factor seasonals and now the decennial cycle …
The Germans have banned short selling, fearing for the Euro. If the Euro fails, the European union fails, or so goes the theory. France already has a ban or short selling, but stocks have fallen anyway, as they always do when things look bad.
Well, what does that mean for stocks … or for anything that has to do with preserving our capital and making money.The only thing we can do is look at the seasonals, which suggest a fall in the summer months as we have been trumpeting in our newsletters.
Market timers , We’re still expecting a market turnaround at the end of this month, starting around the 24th. The market is currently following the 4 year election cycle better than any other factor seasonal, so here it is for a preview…
Presidential Cycle Seasonal Proejction
The charts this month has lots of opportunities. ATT looks good, CAT looks bad. CVX looks a bit depressed from where it should be, Citibank is on track. JPM seems like it’s ready to pop … If you are expecting bad times ahead, you’d pay attention to Disney, Walmart, Caterpillar and Dupont, and put a MACD trigger on the downward seasonal expectations. Seasonally those stocks go down; if there is a market crash, that decline on top of seasonal expectations should lead to some nice trading profits. Here’s a courtesy look at the recent DJIA newsletter with pure price projections. This type of inside information is how traders make money.
