Here are some tips and notes on how to do seasonal fundamental market trading. This apparently works but only those try will know. Here we go:
Use Scholastic oscillator over MACD since it is slower. A scholastic oscillator is a timing tool for entry and exit points. You can use this tool to find your exact entry and exit points. Google it for more details.
There are various disciplines you can use in various market sectors.
For tech, October to January is a good time frame. This time goes up when companies spend their budget on computer systems while the consumer buys for Christmas. There is even timing around the Las Vegas Consumer Electronics Show but get a few weeks before it happens.
Gold has a good time between July and September. The reason here as Indian buy a large percentage of world gold’s supply for their weddings. It represents over sixty percent of the global market.
Agriculture has timing between August and December. This is all do to farmers spending for equipment during their harvest season. They won’t spend until they see what kind of harvest they have as well they get tax returns at this time. Some ETFs to watch for are MOO or COW. Uh don’t ask me about these symbols. They are real.
Metal and mining has general season of December to May. Do realize it may dip in January so use those tools. Look at XME. Do realize most worldwide mines do shut down in the summer.
The above has some of the potential but there are other sectors which include:
Industrial opportunities have periods of November to January and March to June.
Retail growth is between November to December and March to June.
Canadian dollar can be strongest in April.
US dollar weakest in December but strongest in January. This is when other countries repatriate their currencies to purchase with US dollars.
For us Canadians, focus only on oil, mining, and financial. All other industries to small scale have any real opportunities. Focus on al large cap American companies or ETFs as well.
For recessionary or slow growth, gold and agriculture has done fairly well but hold in cash as well. You could also do pair trading like long in XLY (consumer discrete) and short in XLP (consumer staples). Make money on the spread.
Sometimes, you can make money in the few days of each month and first days of the following month. This could include last four days of the month and the first three days of the following month.
Hope these help.
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