Frequently Asked Questions
Q: Do you use seasonality at all? I have built an excel sheet that autoloads market data. Then I built a master spreadsheet. The third week of January is down 9 out of ten years. Tech especially get spanked that week. I don't use it exclusively and have trying to drop it all together, but once again it was right. Do you see a problem using that knowledge combined with the fact that the leaders just weren't moving up like they should have with the market since 3 Jan? There were a few other signs something wasn't right. Like the DOW and large caps starting to move, etc. What do you think?
A: Seasonality is one of many secondary variables we use. We stress the word secondary. Dont let past data influence what the market is telling you now, today. For example, the Friday after Thanksgiving is almost always up. But in 2009, bad news out of left field caused the market to gap down.