Seasonal Indicators


Indicators related to specific times of the year that try to predict year end stock market results. For example, the First Five Days of January Indicator has an 85% success ratio for years where the first five trading days have positive results. Generally the seasonal indicators are centered around shopping seasons. Mainly Christmas. The amount of spending in these months are usually a strong indicator for how the economy is doing.

More details on seasonal indicators

: It can also be a good idea to look at lows in typical spending. This is usually times like September and January (usually after highs). One key month to look at is in august for back to school spending. It can be argued that this spending is even more important than Christmas spending as it is usually considered to be more important items.