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Seasonal trends in energy stocks
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AT-August 2009-3
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A seasonal tendency lays the groundwork for trades, but it cannot be followed blindly.
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Detailed Description
When it comes to the stock market, most people focus the bulk of their attention on the two primary areas of analysis fundamental and technical. The former generally focuses on hard data such as earnings and sales, as well as investor expectations of future earnings and the growth potential for a given company. The latter typically involves analysis of chart patterns, price action, and a host of indicators based on price or volume fluctuations.
Although there is much to be gleaned from both of these forms of analysis, many investors fail to consider a third method: "seasonal" analysis. When engaging in seasonal analysis, an individual is typically looking for price movements that tend to occur on a repetitive basis during a particular given time frame for a given market or market sector.
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