Don Vialoux assesses the market using three things: technical, fundamental, and seasonal analysis. Using seasonality, it is possible to trade based on the time of the year.
In his most recent post here, he wrote the following:
Seasonality in the month of October
During the past 10 Octobers, equity markets around the world have recorded strong gains:
- The S&P 500 Index gained in 8 of the past 10 Octobers for an average return per period of 3.02%. October was the strongest month of the year.
- The TSX Composite Index also gained in 8 of the past 10 Octobers. Average gain per period was 1.47%. October was the third best performing month.
- The Dow Jones Transportation Average gained in 10 of the past 10 Octobers. Average gain per period was 5.12%. October was the strongest month.
- The Russell 2000 Index gained in 7 of the past 10 Octobers. Average gain per period was 2.26%. October was the second strongest month.
- The NASDAQ Composite Index advanced in 8 of the past 10 Octobers. Average gain per period was 6.06%. October was the strongest month of the year.
- The Paris CAC Index advanced in 9 of the past 10 Octobers. Average gain per period was 3.84%. October was the best performing month of the year.
- The Frankfurt DAX Index advanced in 9 of the past 10 periods. Average gain per October was 4.56%. October was the best performing month of the year.
- The London FT Index rose in 7 of the past 10 Octobers. Average gain per period was 3.25%. October was the best performing month of the year.
- The Dow Jones Industrial Average rose in 8 of the past 10 Octobers. Average gain per period was 2.89%. October was the best performing month of the year.
