Seasonality

"Virtually all markets exhibit seasonal price fluctuations."

"Seasonal behavior can take many different forms. It is possible to study seasonal price fluctuation on a monthly, weekly, or daily basis."

"Cash seasonals are an excellent starting point for the purpose of explaining and justifying the existence of seasonality and also for the purpose of finding larger patterns, which may then be refined using weekly and daily data."

"Some analysts believe that it is important to evaluate seasonality by using normalized data rather than raw data to limit the effects of unusually large or small price movements during the data history."

"Weekly readings are shorter term and specific to a given futures contract."

"We do not yet have seasonal trading tools that are totally reliable. When you make trades, use stop losses and limit your risk."

"If you are aware of the long cyclical term patterns within which seasonals function, you can be prepared well in advance for a period of time during which spread seasonals may become unreliable."

"Computation of key date seasonals is a laborious process that should be done by computer."

"For those who can follow the secular seasonal moves, the rewards can be considerable."

"Most timing indicators, when used with risk management rules, regress to the mean. Only a precious few are reliable slightly more than chance."

"The following list gives you specific warnings as to what may occur, why these things may happen, and, most important, what you can and should do in order to overcome or avoid them."