An expanding number of ETFs, combined with the computational power to find seasonal tendencies in the stock market, means ETF traders can utilize these tendencies for trade selection and timing. Seasonal tendencies occur for varying reasons, such as an elevated mood heading into Christmas, seasonal changes, or short-term phenomenon such as one day of the week performing worse or better than others [see How To Swing Trade ETFs]. Below we take a closer look at three seasonal tendencies you can use to your advantage: Six-Month Cycle Ever heard “Sell in May and go away?” This trading phrase is derived from the Stock Trader’s Almanac disclosure that there is a tendency for the stock market to perform better during the six months of November to April than the six months between May and October. Between 1950 and 2011 the average percent change in the best six months was +7.5%, while the gain in [...] Click here to read the original article on ETFdb.com. Related Posts: How Do ETF Dividends Work? S&P 500 ETFs: Comparing The “Twisted” Funds Why SPY Has No Love For Buffett And Berkshire Checking In On the 10 Largest ETFs Year To Date Are UITs Better Than ETFs?
An expanding number of ETFs, combined with the computational power to find seasonal tendencies in the stock market, means ETF traders can utilize these tendencies for trade selection and timing. Seasonal tendencies occur for varying reasons, such as an elevated mood heading into Christmas, seasonal changes, or short-term phenomenon such as one day of the week performing worse or better than others [see How To Swing Trade ETFs]. Below we take a closer look at three seasonal tendencies you can use to your advantage: Six-Month Cycle Ever heard “Sell in May and go away?” This trading phrase is derived from the Stock Trader’s Almanac disclosure that there is a tendency for the stock market to perform better during the six months of November to April than the six months between May and October. Between 1950 and 2011 the average percent change in the best six months was +7.5%, while the gain in [...]
Click here to read the original article on ETFdb.com.
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