🟩 BEST 6 months - Seasonality AnalysisThe market is ready to enter its "Best 6 Months" as the calendar transitions from October to November.
👉 Yale Hirsch , the man behind the creation of the Stock Trader's Almanac, originally described the "Best 6 Months" tendency in 1986. The "Best 6 Months" idea is a straightforward one. Hirsch's analysis indicates that during the past several decades, a significant part of the market's gains have occurred between November and April. And over the past six months, it has generally had difficulty moving forward. I'll also point out that the edge has lasted ever since the tendency was published many years ago, with the "Best 6 Months" consistently outperforming the "Worst 6 Months".
👉 Additionally, as we enter the third year of the presidential cycle, the market is changing. Instead of measuring the Presidential Cycle years from January to December, we do so from November to October. This makes it possible for the cycle years to better coincide with the early November elections. Additionally, even though the elections always take place in the first week of November, we always begin the cycle year on November 1. Combining it with the "Best 6 Months" cycles facilitates evaluation. The third year of the presidential cycle has generally been successful.
The outcomes since 1960 when the Best 6 Months and the Third Year of the Presidential Cycle have both been in outstanding.
RESULT: Since 1950 - to present day ALL 18 instances have shown gains! The average 6 month period saw a net gain of +16.95%!
Months
One of Most Bullish Days for Ethereum: $750 billion Shorts As per liquidation information on the digital currency market given by IP TRADE, Ethereum saw one of the greatest liquidation volumes over the most recent couple of months, on the off chance that not years, with nearly $800 Billion worth of orders being vanished from the market.
Such a huge liquidation volume showed up after Ethereum skipped off the helpline at $1,715 and acquired around 4% of its worth. The crush has undoubtedly seemed due to dealers' and financial backers' conviction that the second greatest digital money available will dip under $1,700 and hurry to the following help at around $1,500.
A seasonal sector-switching strategy has beaten the S&P YTDThe Study
I ran an analysis on monthly stock-market returns over the last 20 years or so, to determine which sector delivered the best median dividend-adjusted returns in each month. December 2020 was the last month included in the study.
The sector funds included in the analysis were all equal-weighted, although they don't all use identical methodologies or have identical expense ratios, so keep that in mind. Also, for some funds, there was more data than for others. Some have been around since 2005, some 2007, some 2012. Here are the funds I included: EWRE, RCD, RGI, RTM, RYE, RYF, RHS, RYH, RYU, XAR, XBI, XHB, XME, XTL, XTN, XSW, XSD.
The limitations of the data mean that the results are probably pretty noisy. I've got no real way to determine the statistical significance of these results, because there's just not enough data. A lot of this will be "noise," but probably there's some "signal" here too.
Basically I compared these sector funds' median return in each month and determined which fund gave the best median return. (The median should be a more robust statistical summary than the mean, because the mean will be affected by outliers like meltups and crashes.)
The Results
Here are the best-performing sectors by month:
January: Biotech
February: Aerospace
March: Real Estate
April: Energy
May: Semiconductors
June: Real Estate
July: Semiconductors
August: Semiconductors
September: Materials
October: Transportation
November: Transportation
December: Metals
The Backtest
Since I didn't use data from 2021 to generate these results, we can backtest a sector-switching strategy on 2021. What if, in each month, we switched to the sector with the best median return for that month?
The answer is that the equal-weighted index returned about 18% YTD, whereas the sector-switching strategy returned about 21%. So there's a slight edge here, but not a large one. If you're trading in a tax-deferred IRA, you'd have come out ahead by using the sector-switching strategy. But if your account isn't tax-deferred, then this strategy will have cost you more in capital gains taxes than you're making in excess returns vs. simply holding the index.
The Code
I've put the R code for this analysis on Github, should anyone wish to check my work: github.com
August worst month for Trading? And why? *We just used DXY as the example. This is true across the board!
The Big Drought
A 10-year analysis on the S&P shows that the markets remain the poorest in the three summer months – June, July and August. Most traders tend to sell their positions in May, and try to reinvest in a fresh positions once the summer is over.
August Is the Worst Summer Month
Most investors and Forex traders in Europe and the North America go on holidays during the month of August. This leads to lower trading volume and significant price actions. Just for example: August 2008 was misleadingly good for the S&P, advancing 1%. However, August 2010 was completely miserable for the S&P, dipping 4.5%, and August 2011 was also miserable for the S&P 500, plunging almost 10%. The month is characterized by sideways trends and momentum swings. However, the trend typically breaks right after the Labor Day holiday in the U.S., and most traders returns to active trading once again.
Post-Summer Months (September-December)
A surge in trading activity usually occurs just after the end of summer, and traders invest in fresh portfolios and positions. These three months therefore represent the best three months to trade in the year.
Another Vacation Spot during the Second Half of December
Forex traders once again stay away from the market in the second half of the December, and celebrate the Christmas Day and the New Year’s Day.
Winter-Spring Action Still Better
The January-May period returned a mediocre 3% on average for the last 10 years, and therefore still does better than the summer months, providing excellent opportunities for traders, continuously for the first four months of the year.
Thee THREE worst months (Summer): June, July, and particularly, August.
The FOUR best months (Autumn): September, October, November, and December.
The FIVE good Months (Winter-Spring): January, February, March, April, and May
What Is The Reason For This Divide?
Any vacation period represents drying up trading volume, and the months following these vacations represent a refreshing return to trading, like rain after a drought.
BTC MACRO CICLE ~ NEW BULLRUN FUTURE MONTHS ~ DOWNTREND BREAKOUT~ vertical golden lines are halvings
~ horizontal red lines are All Time Highs
~ the red arrows go from the ATH to the point where the price is again at the same ATH inside the new bull run
~ the green arrows go from the start of the new bull run to the point where the price sets a new ATH
~ indigo horizontal lines are points of support / resistence for the price
~ the indigo arrows represent how price will navigate through the indigo lines towards the halving in may and in the months following it until it reaches the current ATH again
~ this is the current lower timeframe snapshot of the macro analisys attached ~ with the two downtrends brekouts
~ peace and love ~ vaccum
BTC MACRO CICLE ~ NEW BULLRUN FUTURE MONTHS ~ PLUS DIAGONALS~ vertical golden lines are halvings
~ horizontal red lines are All Time Highs
~ the red arrows go from the ATH to the point where the price is again at the same ATH inside the new bull run
~ the green arrows go from the start of the new bull run to the point where the price sets a new ATH
~ indigo horizontal lines are points of support / resistence for the price
~ the indigo arrows represent how price will navigate through the indigo lines towards the halving in may and in the months following it until it reaches the current ATH again
~ this is the current lower timeframe snapshot of the macro analisys attached ~ with diagonals added
~ peace and love ~ vaccum
BTC MACRO CICLE ~ EXPONENTIAL ~ NEW BULL RUN FUTURE MONTHS ~ NOW~ vertical golden lines are halvings
~ horizontal red lines are All Time Highs
~ the red arrows go from the ATH to the point where the price is again at the same ATH inside the new bull run
~ the green arrows go from the start of the new bull run to the point where the price sets a new ATH
~ indigo horizontal lines are points of support / resistence for the price
~ the indigo arrows represent how price will navigate through the indigo lines towards the halving in may and in the months following it until it reaches the current ATH again
~ this is the current lower timeframe snapshot of the macro analisys attached
~ peace and love ~ vaccum
Dow Jones - Up 50% in 21 months-How Long Can this keep going On?Dow Jones Industrials Index: DOWI (End of Day) Short Term and Medium term Outlook
At least the markets get the President even if no else seems
to. It's quite impressive that people's pensions are worth 50%
more than 2 years ago in many cases.
How long can it go on?
We can see that the Dow is pushing up against the upper
limits of the two parallels that have controlled this great
impulse wave from the outset. A 50% rise is a natural check-
point, as will be 100% when we get there.
We can also see that each time it tests the upper parallel it
begins to unwind, creating a continuation pattern with a
sideways or downward bias that lasts 2 months or so.
It's already lost the power of the smallest parallels and has
since tracked sideways off the first support at 23237, almost
precisely with the actual low some 7 points higher.
So in the near to medium term it's likely that the Dow will
track down the small parallels shown at the top of the chart,
becoming a perfect environment for day-traders that 'get' the
pattern here...sell off the upper parallel buy back on lower
until one day the the upper parallel is broken to upside (or
downside) and follow that break. But it's more likely to zig-
zag down within the small parallels to fill the gap at 22995
and then bounce powerfully from there. That's a nice little
flag to trade between in the meantime.
So at moment it looks like a lazy continuation pattern back to 22393 before a good rally. This pattern will
change on any successful breach of either of the small parallels - to upside follow on successul break of upper
parallel for another test of the larger parallel above.And if the lower small lower parallel is sucessfully breached
on the downside it will seek support off the blue support line at 22995 - just much quicker than if it tracks within the flag.
The 22995 level is important to the medium term for the Dow.
And we can see that the entire rally between the two blue
supports at 22995 and 22393 is, so far, uncontested. It would
be easy pickings for the bears should 22995 fail at any point.
It would fall quickly 600 points (a fabulous short if we see it
at any point, worth setting an alert for) to 22393 at least and
quite likely to test the lower large parallel before the next
rally could begin in earnest.
But until we see a break of those small parallels that form the
flag top, this space belongs to day-traders.
One other thing, this market is one of the best to trade, making conventional patterns, especially in continuation mode - making it muuch easier to 'read' than, say Nasdaq. Look atthe patterns - they're friendly, familiar. Are Nasdaq's? Find a friend you can trust. That would be the Dow.
Long term, for what it's worth, this index should rally at least 4 X from the February 2106 low and quite easily 6 times. America has never had it so good since Ronald Reagan rode into the sunset. Happy thanksgiving to the USA. Long Term Cycle Analysis:
EURJPY, rising in the next couple of months?Good day everyone,
For the past couple of months I've been learning about FOREX , therefore I am not sure if the following event is going to occur, so don't pin yourself down on it.
Today I was playing around with the EUR/JPY charts. I started looking at the month, week and day charts and was testing out some Fibonacci retracement levels.
What I found out, and what you can see on the chart, is that there was a retracement from 0% to 61.8% (from 14-04-2015 till 04-06-2015 which took 51 days) and from 61.8% to -61.8% ( 04-06-2015 till 24-06-2016 which took 386 days).
After hitting the -61.8% mark you can see a trend reversal. Which tests the 61.8% Fibonacci level and then goes up again, which gives me an indication that it might retrace to the 161.8% level in the next couple of months.
I even did a little calculation and it might take between 8 and 10 months before (and if) the 161.8% level is hit.
summarized in the next couple of months there might be an uptrend coming.
Tell me what you guys think, do you think I'm going to be right or wrong and why?
Kind regards,
Khaine
EURAUD: If this happens. HOLD IT!EURAUD is forming a bat pattern. This bat can be the ultimate winning trade. Not only will it form a double bottom, it will form a double bottom on a monthly and weekly major support zone. This will be a high buying area. If you enter this trade. You should hold it for months! Do not miss out!
NOTE: only if price reach the D leg will it provide optimal profits!