Nov. 30, 2011- December and January Effects- Myth or Backed by Data?

Market Sci blog published two research posts yesterday, when it comes to seasonal effects in our markets.

December Super Duper Bullish

December (Not So) Super Duper Bullish

Generally, Decembers have always outperformed all other months of the year.  However, what’s interesting is that when Jan-Nov months are in an uptrend (which is how the Philippines have been trading at), we’re likely to finish stronger.  If Jan-Nov months are not up YTD, December isn’t going to perform.  Well, above is a statistic that takes into consideration the US Markets.  You can go take a look at it, and make better decisions with data.

Also, another good statistic to know upon making your bets with the markets (if you’re inclined to use historical statistics as a helpful probability in making trading bets) is the fact that we’ve been experiencing “all or nothing” days.  This means, we’re up very positively , or we’re down very negatively and not much in the “in-betweens”.  It’s literally a “pula or puti” kind of market.

(Data courtesy of Bespoke)

Still though, most market veterans will always say past results don’t forecast the future.

-Faceless Trader

Advertisements

About Abc

Abcdefghijklmnopqrstuvwxyz
This entry was posted in A Little Common Cents Corner. Bookmark the permalink.

One Response to Nov. 30, 2011- December and January Effects- Myth or Backed by Data?

  1. The statistic is on our side! Good to know.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s