My newsletters get a bit wordy at times. Today I'm keeping the message simple.
While the next couple of weeks don't have much of a track record, there is a noticeable ‘bump' in the track record of the S&P 500 over the next 10 weeks:
This ‘bump' in average returns and ‘win rate' also shows up in the seasonal track records of the Dow Jones Industrial Average, The NASDAQ Composite, and the Russell 2000 index.
The significance of the 10-week time period quickly becomes apparent by looking at a calendar and checking the earnings announcement for Alcoa:
The forecast for the next 10 market weeks is therefore:
This is based strictly on historical track records. This year's mileage may be different.
Today's Seasonal Forecaster newsletter focuses on a trade opportunity that could profit from a move in the underlying stock in either direction (and I lay out the case why that is likely). Then I show on another stock how that trade can be adjusted to function as a low cost-of-entry replacement for shorting the stock.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, please click on the following link: www.markettamer.com/seasonal
Copyright (C) 2014 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
The content on any of Market Tamer websites, products, or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options, and other securities involve risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities are not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options (http://www.optionsclearing.com/publications/risks/riskstoc.pdf). The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.
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