In this episode, Brian discusses how seasonality can impact the stock market. Seasonality refers to recurring patterns or trends that appear at specific times of the year, just like seasons in nature. Brian emphasizes that while seasonality can provide insights into potential market movements, it should not be the sole factor in making trading decisions. He highlights key seasonal trends such as the January effect, sell in May and Go Away, Back to School and the infamous Santa Claus rally. Brian also explains how different sectors, such as retail, energy, and technology, are affected by seasonality.
What you will learn in this episode:
1. Seasonality refers to recurring patterns or trends in the stock market that appear at specific times of the year.
2. While seasonality can provide insights into potential stock market moves, it should not be the sole factor in making trading decisions.
3. Key seasonal trends include the January effect, sell in May and go away, back to school and the Santa Claus rally.
4. Different sectors, such as retail, energy, and technology are impacted by seasonality in different ways.
5. Traders can use seasonality to plan around earnings season, adjust position sizing, and stay agile in response to market movements.
Thank you for listening! If you have a topic or question for the podcast, email that question to brian.montes@icloud.com.
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