Monday, December 07, 2009

Some Seasonal Timing Strategies

Here are some seasonal timing strategies as based on the book "All About Market Timing" by Les Masonson.

1. Invest in the stock market on November 1 of each year. Then sell on April 30 of the following year (and go into cash equivalents) until November 1 of the next year.

2. Invest in the stock market on the last day in October of each year, and then sell on the fourth business day in May of the following year. This had better results than the first strategy.

3. Use the MACD indicator in conjunction with the first or second strategy. Place the MACD indicator with settings of (12,25,9) on the bottom of the chart. In the April–June time frame look for a MACD crossover signal to the downside (below its “0” line) to sell your investments. Likewise in the October–December time frame look for a MACD crossover signal to the upside (above its “0” line) to get into the market.

4. Avoid the stock market entirely each September. Simply sell on the last day in August and buy on the first day in October.

A variation of the last strategy is avoid both September and October. That is buy on the first day of November.

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