People always ask me how to make stock picks or how to trade stocks using seasonal analysis. Well our August newsletters came out over the weekend, I went through the charts and selected several buy and sell candidates, and then got in on Monday for the stocks that I thought had already proven their seasonals.
You don’t always get in on the first day of the month. It was just that some stocks had proven their seasonal lows just prior to the new newsletters. For other stocks the newsletter shows that I should be waiting for trend changes in the middle of this month because they tend to make some V-tops and bottoms. So those go on the watch list and I have plenty of time to evaluate them.
In any case, Pfizer (PFE) was one of the stocks I got in for the retirement account. It’s a short term trade I’m only expecting to hold until September, and if it beats 2% for CDs I’m doing much better than even most portfolio managers, and that’s what seasonal analysis can often do for you in terms of stock picks. In this video you can see the chart, how I selected it, and a SURPRISE … I wake up the next day and PFE had an upside gap due to an earnings announcement well beyond expectations, so the price action in following the seasonals were forewarning of that. Just like our AMZN trading video, these unexpected great moves happen time and again when you start using the seasonal charts for your trading. It might not happen this month, but you get the newsletter month after month and eventually those trades happen for you as you get better at stock selection.
In other words, this video shows you what you get from our newsletters and how to use them to select stocks on both the Buy side and Sell side. Stock pickers love this. Clear signals if you want to buy stocks and sell stocks. Just look for:
1. The green line (ordinary seasonal) and orange projection line (factor seasonal) both head in the same direction
2. The correlation number in the upper right corner is around 70% or more, or the chart looks so good that you can ignore it
3. The expected move is big so I have a good chance of making money (though I often trade small moves for 5% or so if the move is consistent on both the green and orange lines with a high correlation and Factor Seasonal support; 5% beats 2% CDs for a year of money sitting in the bank or money market account)