top of page

Seasonality Bearish & Sentiment Bullish

Seasonality Bearish & Sentiment Bullish! The combination of bearish seasonality and bullish sentiment is a perfect storm for a stock market correction.

  • Bearish seasonality refers to the tendency for the stock market to perform worse in certain months or seasons of the year. For example, historically performed worse from July through October than it has from November through May.

  • Bullish sentiment refers to the general mood of investors, which is often measured by surveys or polls. When sentiment is bullish, it means that investors are generally optimistic about the future of the stock market.

When bearish seasonality and bullish sentiment coincide, it can create a perfect storm for a stock market correction. This is because investors are often more likely to sell stocks when they are already overvalued and sentiment is high. This can lead to a sharp decline in the stock market, which is known as a correction.

Of course, there is no guarantee that a correction will occur, that's why we use our proprietary algorithm's to make the final decision making in buying or selling stocks. But the combination of bearish seasonality and bullish sentiment is certainly a risk factor. Investors should be aware of this risk and should consider taking steps to protect their portfolios if they believe that a correction is imminent.

  • Join our premium subscription service 30 day free trial to find out when our algorithms trigger a sell alert.

  • Our premium subscribers where alerted on March 17, 2023 to buy SPY ETF and we are still long.


Seasonality Bearish & Sentiment Bullish
Seasonality Bearish & Sentiment Bullish


Comments


bottom of page