Market Timing Research

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

Archive for the ‘volume’ tag

Market Timing Dow Jones Forecasts Using Volume and Monetary Policy

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We’ve just completed a major new study here at Market Timing Research on volume cycles in conjunction with seasonal cycles. Using our same proprietary method for developing price seasonals, we did the same analysis for yearly volume to see if volume does indeed go up as prices go up, and down as prices drop, and to see if it could explain volatility in certain times of the year. Sure enough it does, and when there are periods of disconnect between volume and price, this may bespeak to an insecure market or periods of volatility that can be used to your benefit. The following charts shows what we’re talking about.

To our knowledge, no one has ever done this type of analysis previously or produced this type of chart before. As usual, we are market timer firsts. The stock charts suggests we should see a sharp spike UP in the market around now, though that would have to be confirmed with the lunar seasonal.

Volume Seasonal

The other factor seasonal we’d like to highlight is the DJI typical price pattern in years when the government is doing everything possible to provide easy money, as the market has about an 80% correlation with this trend. You can see the forward expectations if this pattern is to hold, once again forecasting a near term bump UP against all expectations.

monetary policy

Naturally you can find lots of individual stocks obeying their seasonal tendencies in our monthly newsletters. Just grab a sample subscription and see for yourself all the money you could be making with this insider information.

Written by Market Timer

May 25th, 2010 at 5:03 pm