November’s A Nifty Month For The Nikkei

Seasons, Patterns & Cycles • Nov 8, 2023 at 8:40 AM EST

Stock, Trading, Monitor, Business, Finance, Exchange

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The Nikkei has a very strong seasonal pattern towards the end of November. The reason for this pattern is due to some tax-loss selling behavior that repeats itself time and time again, resulting in gains in the Nikkei. Also around the time of the term of the month, the Nikkei seems quite a decent seasonal pattern that traders need to be aware of. Over the last 58 years, the Nikkei has gained an average of 1.28% between the 22nd of November and the 3rd of December.

The maximum game has been a stunning 6.13%, but the maximum loss is a significant 5.86%. So, with a seasonal pattern above 77%, is this a seasonal pattern worth looking out for this year?

Major Trade Risks: The major trade risk here is that tax loss selling behavior may not have the same impact on the Nikkei as in previous years.

Video Length: 00:00:57

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