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To: mishedlo who wrote (71710)	4/20/2003 10:38:23 PM
From: skinowski	Respond to of 209892

I read the book by Sy Harding, who did a lot of work on seasonality and uses it as one of his trading systems: syharding.com In short, the time period from the end of October until early May tends to be bullish and the other 6 months bearish. Back testing for the past 50 years or so showed that fine-tuning the exits and entries using the MACD significantly improves results. So, some time during the few weeks around these dates he looks for a buy, or, respectively, a sell signal on MACD.

To: mishedlo who wrote (71710)	4/21/2003 9:19:14 AM
From: bcrafty	Respond to of 209892

mish, the "seasonal buy/sells" is a little bit of a misnomer and would probably be better termed "MACD based buy/sells." His latest free chart of the MACD and his signals is in the link following the paragraphs below. For those that wish to go long based on the seasonality factor, perhaps the way to do it is to throw out the November-April timeframe and instead to use a MACD based system for trading the "season" as Sy Harding mentions. Sy is a little loose on defining the length of this period (giving his MACD-based season a length of over a year in 1998-9 and only a few months at the end of 2000): "It first refined the optimum average seasonal pattern as being from the next to last trading day of October, through the 4th trading day of May. Those dates are marked by the vertical dotted lines in the chart shown above. However obviously the market does not begin its favorable season rally exactly on November 1 each year. Nor does it begin its unfavorable season correction exactly on May 1 each year. So, we then applied a short term momentum reversal indicator to better pinpoint the entries and exits as the calendar dates approach. An example of how it works at the entry: If the momentum reversal indicator tells us a rally has begun three or four weeks prior to the calendar date, we will simply enter then rather than waiting for the calendar date. But if the momentum reversal indicator remains on a sell signal as the calendar entry date arrives, we simply wait until the correction ends before entering. That makes a huge difference. It allows the favorable season or the unfavorable season to vary from 4 to 8 months, depending on what the market itself is doing at the time, rather than being locked into the calendar date entry of the basic "Sell in May and Go-Away, six-month seasonal strategy. The results speak for themselves in the above chart and table." streetsmartreport.com