Prime Season Calendar

Please enable javascript to view this Calendar.
The Prime Season Calendar reveals the "seasonality" of each sector, recommending potential buy and sell dates based on how they have performed over the last 15 to 25 years. To recommend trades in Absolute Profits, Sean Hyman consults this chart, then applies a number of other screens and tests atop it to drill down from countries, to sectors, and finally down to the best individual stocks at the most compelling prices.

Keep in mind, the calendar is a guideline, AND NEVER THE SOLE DETERMINANT OF SEAN'S TRADING DECISIONS. Putting all of his knowledge and strategic tools together is the benefit of Sean's 360-degree value screening system in action, and why subscribers to Absolute Profits gain an investing edge. Often time's Sean will recommend investments that contradict the Seasonal Calendar because there is clear data supporting the trade.

Now, for those of you interested in the nitty-gritty details of this calendar, here are a few additional details on how it was assembled. For the purposes of the "Return" and "Win %" (the number of times a trade would have ended up positive), we used the MACD to verify a buy or sell signal. If the MACD difference was positive, when the calendar said to buy it, then we "bought" it in the back-tested model. But if the MACD difference was negative, we refrained from buying it, no matter what the Prime Season Calendar said to do. If you would like to replicate how we did this, before buying any sector, check out the MACD indicator (which one can do on sites like Yahoo Finance). Make sure you use weekly price data, not daily. Your MACD parameters should be a "Slow Period" of 26, a "Fast Period" of 12, and a "Signal Period" of 9 (which also happen to be the default settings on Yahoo).

For those of you wondering, you could choose to follow the Prime Season Calendar without consulting the MACD, although the overall return and win ratio would likely be lower.

A final note: The trading days listed in these calendars are approximate, in that you need to adjust to the nearest market trading date if the date listed falls on a holiday or weekend.