Seasonality in Stocks and Market Patterns

This chapter explores the concept of seasonality in stocks, discussing repetitive patterns in the market caused by events like tax payments and regular contributions. It emphasizes the importance of combining various factors to analyze and predict market trends, and highlights the significance of outliers and contrary thinking. The chapter also delves into the seasonal patterns of the Santa Claus rally and the January effect, as well as the concept of the January barometer as a momentum measure in determining overall market performance.