During my last post, I mentioned an interesting data pattern which I call "Revenge of Three Bears". Now, let's find out which days are more bearish than others in October.
From the chart above, it’s pretty clear that if October is going to end in red then the most historically bearish period, that is 2nd half of the October is the time when market may show weakness. One can trade this weakness only when price pattern confirms the same.
I’ll end this post by quoting Salil Mehta about October seasonality in his post Our autumn of discontent.
"There is a statistically strong historical repetition of market crashes, occurring in the months near October (e.g., September through November). But so too do crashes more often occur on Mondays, for any month of the year."
Be careful out there!
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| Most bearish days of October |
From the chart above, it’s pretty clear that if October is going to end in red then the most historically bearish period, that is 2nd half of the October is the time when market may show weakness. One can trade this weakness only when price pattern confirms the same.
I’ll end this post by quoting Salil Mehta about October seasonality in his post Our autumn of discontent.
"There is a statistically strong historical repetition of market crashes, occurring in the months near October (e.g., September through November). But so too do crashes more often occur on Mondays, for any month of the year."
Be careful out there!
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