Seasonal Stock Market Timing
64Factor Seasonal Charts
Most people understand there is a seasonality to the stock market, and that it can be used to trade the stock market more profitably. What they usually forget is that individual stocks have seasonal trends as well.
These trends can differ dramatically than the market average seasonal. Furthermore, a stock's unique seasonal trading pattern can change based on the fundamental environment of the economy -- such factors as the inflation rate, interest rate trend, politics of government, whether we're in a bear or bull market, and so forth.
When you determine a stock's seasonal chart against these different factor environments, you have what we call "factor seasonal trends," and these charts that combine fundamentals with technicals are a boon to most stock traders. You can find out more at http://www.squidoo.com/StockMarketSeasonalTrends.
Basically, a new form of seasonal trading has arrived with the dawn of these factor seasonal market timing charts. Traders and investors can select a stock, and create factor seasonal charts for different type of market environments. By monitoring the correlation of present stock prices to the various factor seasonals, they can determine which pattern the stock is following -- what environmental factors it's moving to that are affecting its economics and prices. From this one can set up time expectation for trend changes.
If you put a technical timing signal on top of these time expectations, such as a MACD or moving average or Williams %R, you now have a more improved way of trading stocks or making investments. Start off with stocks that have high IBD, Value Line, Vector Vest or other ratings in the first place, and now you have better entry signals for shares you'd be buying anyway though possibly at willy nilly entry points.
This is the first new type of market timing research that has come along in a long while, and offers great promise for the next generation of market wizards.
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