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This Specific Type Of Energy Fund Is A Buy

I recently discovered the website equityclock.com which provides seasonal patterns for various equities, futures, benchmarks, industries and Forex. You can even select a month and it will tell you which stocks have seasonal patterns starting in that month.

The people that operate equityclock.com and a sister site timingthemarkets.com are Don and Jon Vialoux, research analysts who worked on the Horizons Seasonal Rotation ETF (TSX:HAC) at Horizons ETFs Management Canada Inc. up until August 2015. Below is the post-launch performance of HAC.

HAC uses seasonal patterns in conjunction with fundamentals and technical analysis as the basis for making trading decisions. Based on the track record of this ETF, I am going to stick my neck out and declare that they know what they are doing!

According to this report on the Timing The Markets website:

"Seasonality analysis is a useful tool when determining a general time to enter and exit equity markets and sectors. However, seasonality analysis seldom is precise. It gives an average date in history when seasonal trades are optimal. Equity markets and sectors rarely reach important lows and highs exactly on their historic optimal dates. The dates for lows and highs will vary slightly each year from their average optimal entry and exit dates. The solution is to use technical analysis to pinpoint seasonal entry and exit points as seasonal average optimal dates approaches. Normally, technical analysis will pinpoint entry and exit points within one month (plus or minus) of an average optimal date."

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by Steve Auger