Anyone trading next week seasonality ?

Next week is worst week in the year for the stock market, so shorting SP500 and USD longs would be good.
Would be good or Will be good? That is the question, lol.
The beauty of trading is that we indeed shall see.

TrAndy2022, if you have a method, a protocol, a plan that you can use to trigger your buys and sells to enter when action in the market presents itself, and you think that seasonality will stimulate some action during a particular duration of time, then that combination would warrant your attention to the matter.

Others of us may look to events like scheduled economic calendar events such as the US Jobless Claims reports and so forth around which to watch for market reaction in the form of Price Action setup/trigger pairs without regard for prediction etc, but simply direct attention to those quarters during that specific duration as an interesting "fishing hole".

If you do not have a reliable method to apply during these seasonality events, then you will want to be able to survive across numerous events sufficient enough to benefit from the ones that do work interspersed with the ones that do not work.

You could to look into cycles of all types if this brand of trading, e.g. seasonality satisfactions ya.

trading cycles.jpg

 
Next week is worst week in the year for the stock market

There's never a good week, ideal week, best week, slow week, boring week, dumb week or whatever else to trade in the market.
If you come in with that kind of mindset....you'll be shocked, and left with a dud of an experience and profit and account. No preconceived notions, expectations.

A steady, professional, wise trader should be able to understand and trade and profit relatively consistently week-after-week, day-after-day, month-after-month, in the market. Similar to a dentist....every set of teeth walking into their office is the same to them, regardless if it's from a poor kid or rich executive or entrepreneur....or an attractive person or ugly person. You handle the situation as you see fit, neutrally.
 
Sorry dude, but there IS no trading idea. There's just your backtest results which are based on your black-box algorithm. No one can say if this is a good trade or not. I suspect, you are looking for someone to say "It's a great idea!" and then you will feel more confident entering the trade on Mon.
Sorry, but I fully disclosed anything, it is no black-box at all. If someone does not understand the idea and parameters behind it is to him. I do not write an essay here. There is enough information here provided from me to reengineer it easily. I do not support people who cannot program an easy task at all.
 
I trade seasonality and other statistical data, but I generally use it as a supporting parameter and don't trade on it alone.

For example, September seasonality was part of the reason why I was suspicious of this last rally higher expecting it to top out sooner than later. And after that CPI print it made me even more confident we'd see continuation lower.

Haven't done any homework for next week yet, so I have no opinion as of now.
Would like to know your outcome when you have made your homework. What is your idea for next week then (when you made the research) ?
 
A steady, professional, wise trader should be able to understand and trade and profit relatively consistently week-after-week, day-after-day, month-after-month, in the market.
I know but I want to know if this time is a good time to make an exception. There are no markets where one can enter with stupidity all times. Sometimes exceptions must be made (see the war at the begin of this year and causing the extraordinary volatility and moves, it could not be backtested prior but it has to be factored in of course).
 
Would like to know your outcome when you have made your homework. What is your idea for next week then (when you made the research) ?

Sure thing. I tend to post those in the ES-Journal. I'll let you know.

My view is that the markets are a bit unhinged and loose at the moment. While still trading technically, it's possible the markets are less predictable at the moment as a result. But I'm only speculating...

There's also FOMC next week which is likely to be a major factor for how next week plays out.

Bottom line: There's a lot of stuff going on and seasonality for me would only be an added layer of confidence for playing the short side. Since the market is down a bit already it also makes it less attractive to push the short side.
 
TrAndy2022, do you have a method that you apply to determine when you buy and sell to enter?
What I said is that you have factor in any relevant news. The new news cannot be backtested as such, because there are (rare) exceptions.
 
If anyone is not trading the SP500 bearish seasonality end of September, does then anyone trade the FOMC drift, which usually causes a +0.5% move in the S&P500 ? See chart here.
FOMC drift.gif
 
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