One of the interesting features of Seasonax is being able to look at the impact of the time of the month on various instruments. It can be surprising to note that there are significant changes in the behaviour of stocks, commodities, and indices, depending on what time of the month it is! The financial markets, like the weather, have seasons of fair weather and poor weather. Seasonax helps you to identify the impact of these seasonal patterns and can reveal some interesting facts.
So take for example the S&P500, It can be surprising to note that the period of strength tends to be in the second half of the month with a 65% winning trade percentage and an average return of around 0.50%!
The major trade risk here is that CPI print misses to the downside and this could give the USD a sharp nudge lower in contrast to the event pattern!
Remember, don’t just trade it Seasonax It!