Post #1914 by FlyingCircus on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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Most of you have seen and read a lot about seasonality - specifically, weakness in the summer months whether it's sell SPY/QQQ/IWM in May or sell in June upon MACD/PPO weakness, buy in Octoboer, the January barometer, etc etc.

Here's a picture of relative seasonality between EFA (ex-US developed large caps) and SPY. It indicates, as relatively noticeably weaker as the US market is in summer, EAFE is noticeably and significantly worse than the US. As in, over the last 20 years SPY has outperformed EAFE @67% of the time in every month between May and November, with a weird outlier in September (SPY's historically worst month.)

Here's a Stockcharts link. If necessary, drag the time bar at the bottom left to show 20 years of history.
https://stockcharts.com/freecharts/seasonality.php...

FC
lining up my summer risk reduction plans

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