'Tis the Season to Talk Seasonality

Did you notice the bump over Thanksgiving week? Guess what? 80% of the time, there is a bump over Thanksgiving week, from Monday to Wednesday. Friday is usually flat.

If it isn’t going to happen that year, you’d likely know before you entered the week because the market would already be in a bearish pattern.

Now that you know that, you have a tool in your pocket for next year!

We’ve spent some time discussing window dressing, a more minor part of the puzzle of seasonality.

What is seasonality?

There are parts of the year when the stock market has a pattern. Not all of the time, but MOST.

November and December are up.

Jan + Feb, there is consolidation.

April - May is a boost.

June is flat.

July steadily climbs up all month, corresponding with the most significant company earnings released at the end of the month.

August has a pullback because institutional traders go on vacation.

After Sept 11th- a boost.

October has a notable pullback. Most retail traders think the world is ending. The joke is on them come November when things take off again.

That’s the year, in a nutshell, friends.

That’s your roadmap.

Have fun with it!