There are other "seasonal" patterns worth remembering, and while not 100% valid, it is good to keep these on your side, strength often occur early in the three major quarterly periods (January, April and July, on rare occasions October as well, but that one is more complex). On triple witching expiration, if the market is up, it is often down the following week (beginning of the week), and vice versa. Markets have seasonal strength going into long weekends. These are just few of these, and there are many others, similarly, technology is "traditionally" strong between October and April and weak between May and September. Last year was an anti thesis, and technology investments in October would not have yielded very good results this April. It could very well be, thus that the "traditional weakness" this May to September" might not appear either...Personally, I do not think so.
Zeev |
