As you know, day- and price-accurate seasonal charts are among Seasonax's most important offerings.
This allows you to closely examine a seasonal trend from, for example, the 10th of one month to the 22nd of the following month, with just a few mouse clicks.
However, sometimes it can be exciting to examine entire months seasonally!
In this regard, we have a special month ahead of us: September.
The seasonality of September under the magnifying glass
Take a look at the seasonality of the US technology stock index Nasdaq 100 in the seasonal chart.
For the index, I have chosen the detrended seasonal pattern. Detrending can be easily switched on in Seasonax, by clicking on the button with the arrow symbol above the chart:
Detrending switch in Seasonax
Detrending makes the seasonal trend more visible. Source: Seasonax
Detrending removes the superordinate trend. The end point of the chart is at the start point. For this purpose, the superordinate price movement is subtracted proportionally distributed over all days.
Detrending helps you to identify bearish trends faster
In the detrended chart, you can thus visually recognize the seasonal trend more quickly. This makes it easier for you to recognize weak phases in instruments that have risen strongly in the past, such as the Nasdaq 100.
The next chart shows you the detrended seasonal course of the Nasdaq 100 exactly to the day:
Nasdaq 100, detrended seasonal trend, determined over 25 years
The seasonal periods of weakness are clearly visible. Source: Seasonax
As you can see, there is a seasonal weak phase in the Nasdaq 100 in September. Thanks to the detrending, you can recognize it faster.
Why not try detrending for yourself in Seasonax?
Increase your capital even in downward phases!
Overall, September is the weakest month in the Nasdaq 100, as well as many other equity markets.
A downward movement is therefore imminent in the coming weeks.
However, you can hedge in the short term, or invest in short instruments. Seasonax supports you in identifying difficult phases.
Detrending allows you to recognize weak phases in the chart more quickly.
You can visit www.seasonax.com and try out Detrending right now!
Founder and Chief Analyst of Seasonax