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The UK Stock Market Almanac 2016: Seasonality analysis and studies of market anomalies to give you an edge in the year ahead by Stephen Eckett

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Six-Month Strategy with MACD

We have already looked at the Six-Month Effect (the tendency for the November-April market to outperform the May-October market), and how a portfolio based on this effect can dramatically outperform an index fund. But it is not necessarily the case that the strong half of the year begins every year on exactly 1 November, nor that it ends exactly on 30 April. By tweaking the beginning and end dates it may be possible to enhance the (already impressive) returns of the six-month strategy. An obvious rationale for this is that if investors are queuing up to buy at the end of October and sell at the end of April, it can be advantageous to get a jump on them and buy/sell a little earlier.

This idea of finessing the entry/exit ...

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