Seasonality charts really work well for commodities such as oil and gas, when the winter and summer seasons can have a major effect. We can also applied it to stock market to help us predict market directions too.
The lower window is a seasonal chart of the iShares Russell 2000 ETF (IWM). It shows the average price behavior of the past 10 years and projects that average into the future. The chart clearly shows positive seasonality from March to May and October to December. Negative seasonal includes early part of the year and again late May to August. Based on this seasonal chart, we should expect difficult actions for the stock market in the next several months. So maybe instead of 'sell in May and go away' you should 'short and stay'.
