Stock Trader’s Almanac
For several decades, Stock Trader’s Almanac (STA) has endeavored to provide “the necessary tools to invest successfully (Hirsch & Mistal, 2022, p. 7)” It was originally created by Yale Hirsch and reflects his lifelong interest in market history, cycles, and price patterns. His son, Jeffrey, joined the company (Hirsch Holdings, Inc.) in 1990 and eventually became editor-in-chief with the mission of improving the content and application of the almanac.
STA is a data-driven publication that contains market information extending back to 1950. This important strength enables the reader to acquire a big-picture view of price behavior as reflected in the Dow Jones Industrial Average, S&P 500 Index, Nasdaq Composite Index, and Russell 2000 Index. Much of the information is arranged in calendar fashion. At the beginning of each month, a concise summary of important market tendencies is presented. Key dates are then highlighted throughout the month. To enlighten the reader on details, brief articles and data tables are included within each monthly “chapter” as well as in the latter pages of the publication.
As you might expect, STA is not statistically predictive, i.e., it does not use financial modeling to forecast what the major indices are going to do on specific days or at selected times of the year. However, as a “practical investment tool,” it does alert traders to “those little known market patterns and tendencies on which shrewd professionals enhance profit potential (p. 7).”
For several years, I have used STA to maintain an awareness of seasonal price movement—something that can be easily lost in the maze of day-to-day trading. Although generally useful for position traders, STA can be particularly beneficial for day traders and swing traders who specialize in trading individual stocks and stock index futures. If we know the likely direction of the major indices at a specific point in time based upon historical data, we can make more informed decisions about establishing market positions.
Hirsch, J.A. & Mistal, C. (2022). Stock trader’s almanac 2022. Hoboken, NJ: John Wiley & Sons.