Chris Vermeulen | Dec 08, 2013 12:14AM ET
'Tis the Season for the most powerful seasonality trade of the year!
The chart below is self-explanatory I think… But let me recap.
The overall trend is up, so your ETF trades should be to the long side buying on the dips. The chart below goes back three years so the candles are a little condensed and small, but what you need to know are these two points:
1. After a correction within a trend, probability says that price is more likely to continue rising than it is to reverse. Notice the market just had a running correction through the summer months.
2. A reversal candle on the weekly chart (bullish reversal candle) generally indicates a 2-3 week rally is likely to happen.
Conclusion: Seasonality says higher prices, weekly chart below shows bullish reversal candle…Oya!
Things are going to be really interesting over the next few years; You better be prepared to make a killing during the next bear market or life will not be fun.
In short, I think we have a couple good weeks ahead of us. Holiday season, quality family time and a rising stock market all paint a nice picture in my mind.
I hope this report was helpful and somewhat educational. I always appreciate feedback and things you would like me to write about how I interpret, trade or analyze things. I am here to help and new topics to write about are always welcome!
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