Where 4 of the Market’s Most Popular Stocks Could Be Headed From Here | BY KEITH KAPLAN CEO, TRADESMITH | It’s a new year – and so far, it’s been a tough one for traders. That can make it hard to trade with confidence – and harder still to earn a decent profit. So, here at TradeSmith, we’re always working to turn our analytic tools and algorithm research into advantages for you – our readers. And recently, we’ve cracked the code on how to find the best days to buy and sell any given stock… throughout the year ahead. Even in the most volatile periods, there are cycles running throughout the stock market: quantifiable patterns of growth and weakness that repeat – year after year, with a shocking frequency. You’re probably familiar with some of them already: the common advice to “sell in May and go away,” to expect declines in September, and to ride the S&P 500 for the six months from November to April for the best annual returns. Our breakthrough is how to identify individual seasonality cycles for every stock in our database. And it’s already paying off less than 25 days into the year. Let me show you what I mean, then I’ll share the seasonal forecast for four of the hottest stocks in the market. Forecasting The First Great Buy of the Year In early January, I proudly made a claim during my Breakthrough 2025 webinar about single-stock seasonality: Jan. 17 would be the time to buy Netflix (NFLX). I didn’t have a hunch, or any deeper analysis. There was no big news rumbling through the headlines, either. Earnings hadn’t come in yet. All I knew was that our data – and our Trade Cycles Seasonality tool – suggested that NFLX had an incredibly high chance of rising sharply, as early as Jan. 17. Below is a view of NFLX in the Trade Cycles Seasonality tool – our proprietary market scanner, and the foundation of our breakthrough Seasonal Edge system. Each of the shaded green areas you see above is a bullish “seasonality window” that Trade Cycles mapped out for us on Jan. 1. During those periods, NFLX stock has risen strongly and consistently – at least 80% of the time – in the past 15 years: The blue line charts price movements for NFLX this year, which is just getting started, and the green line that extends throughout the year charts the expected trend based on our 15-year dataset. The Trade Cycles Seasonality tool noted that from Jan. 17 to April 17, NFLX delivered an average return of 23.75% – with gains a whopping 93.3% of the time over the last 15 years. Annualized, that represents an incredible 96.3% return on investment. The powerful algorithms behind this tool only examine a ticker’s historical trading data to find these kinds of strong trends and repeating price movements: it is purely backward facing. Our data suggested that NFLX was due to spike in price – but we didn’t know if there would be a news catalyst or if it was just prime time for institutional investors to buy in. We just recognized that there was a high probability of success… and potentially a big win. And those who were willing to listen to my forecast at the Breakthrough 2025 event were well-rewarded: Five days after this bullish seasonality window opened, Netflix blew away earnings expectations and hiked subscription prices, sending NFLX 12.5% higher than it was at the start of the seasonal window. If you had bought options, you could’ve doubled your money – and then some. Just over a few days. For example, with NFLX’s share price in the $840s-$860s prior to the earnings report, if you’d went ahead and bought NFLX 7 Feb. $870 calls a couple days after Breakthrough 2025, on Jan. 10, you could have made a 268% profit on this rally. That’s the power of seasonality. And Trade Cycles – along with the new Seasonal Edge trading system we launched earlier this year – puts the power of these market patterns in your hands. Our Seasonality tool maps out the bullish and bearish periods of any ticker in our database. And with Seasonal Edge, we’ve created an automated system to help you trade the strongest of these seasonality periods – with a strategy that delivered returns of 857% over an 18-year backtest. That’s more than double what the S&P 500 returned over the same period. But I don’t just want to repeat the results of our tool. Instead, I want to encourage you to get as excited about seasonality as I am. So, to give you a taste, here’s the upcoming seasonality data of five of our most-searched stocks from last year – straight from the Trade Cycles Seasonality tool. Eli Lilly (LLY) One of 2024’s strongest investment trends came from the healthcare and pharmaceutical sector, as Ozempic and similar weight-loss drugs took the market by storm. Eli Lilly (LLY) was one of the major winners, launching it into TradeSmith’s top 25 most-searched stocks for the year – as its Ozempic competitor Zepbound helped drive it to all-time-highs last August. And the stock could easily see more success this year. According to our Seasonality tool, LLY has a strong bullish period coming up soon. Between Feb. 11 and April 27, the pharmaceutical stock rises an average of 6.25% – at a 93.3% accuracy rate over the last 15 years, much like the bullish NFLX period mentioned above: While Eli Lilly may not see the same intense price spikes forecasted for Netflix, it is a more stable stock in a far less volatile sector. And LLY does have three additional bullish seasonal periods interspersed throughout the year. Traders could make good use of call options on LLY throughout 2025 – especially in November. The stock enters a similarly strong bullish window at that point, where it tends to rise an average of 7% into the end of the year. Broadcom (AVGO) Though weight-loss drugs caught the market’s attention last year, nothing held Wall Street’s focus like the AI trade – and in 2024, semiconductor manufacturer Broadcom (AVGO) was one of the greatest beneficiaries. After doubling in value last year, and becoming the 12th most-searched stock on our platform, its performance has been hampered by the latest news of the DeepSeek AI developments in China. However, AVGO has plenty to look forward to in 2025. In fact, AVGO has just entered a new bullish seasonal window. Over the last 15 years, AVGO has risen every year, between Jan. 27 and Feb. 16, with average gains of 5.3%: And while this year may break that trend – as past results do not guarantee future success, even with our powerful Seasonality strategies – there are plenty of opportunities to trade AVGO in the short-term this year. For example, the next bullish seasonal period runs from March 13 through March 28, where AVGO has risen an average of 3.3%, with gains a respectable 86% of the time over the last 15 years. And with four additional bullish seasonal patterns after that, culminating in an average rise of 12.9% in November, this semiconductor stock could be worth coming back to. That said, you may want to avoid the bearish seasonal period in late April – where AVGO falls an average of 2.2%, with an 80% accuracy rate over the last 15 years of trading. Amazon (AMZN) Elsewhere in the tech sector, Amazon (AMZN) maintained its position as one of the strongest stocks on the market even as 2024’s trends kept it out of the spotlight for the most part. As part of the “Magnificent 7,” Amazon has continued to dominate the market – and as the 7th most-searched stock on the TradeSmith platform, it has its own strong seasonality to track. AMZN’s strongest bullish window in 2025 comes this summer – from May 24 until July 13. Over this period, AMZN rises an average of 10.25%, with gains every year over the last 15 years: A seasonal window this promising – and this consistent – on a stock of this size is not one to miss. Unless something exceptional occurs, I’ll be marking my calendar. Palantir (PLTR) Unsurprisingly, stocks in the technology sector dominated headlines across 2024 – and dominated our list of top-searched stocks just the same. But while Palantir (PLTR) took the #2 spot on TradeSmith’s search list, it isn’t on my list of sure bets in 2025. Not for bullish trades, anyway. This big-data company has been volatile over the few years it’s been trading – and it’s a prime example of how the Trade Cycles Seasonality tool can be used to plot out bearish trades as well as bullish ones. As you can see below, shaded in red, PLTR has an incredibly strong bearish seasonality period coming up. From Feb. 15 until May 6, the stock has dropped… and dropped hard: PLTR falls an average of 24.4% over the period and has dropped every year for the last 5 years. Our Trade Cycles system offers stronger forecasts the more data we have to feed it, so PLTR’s slim five years of trading data makes our seasonality tool’s analysis less potent than it would be for an older stock, like AMZN. However, with the data we do have, PLTR is a solid candidate for put options between now and the second half of the year. I’d just be sure to avoid staying short for too long… as the stock has risen an average of 42.4% following its annual drops – every year for the last five years: Putting Power in Your Hands These seasonality windows can be used to guide your trading throughout the year – but this is just a taste of what we’ve been working on at TradeSmith. Our subscribers have access to detailed seasonality data on hundreds of different tickers – and our Seasonal Edge trading system is just the first of our planned upgrades to our seasonality tools this year. By helping individual investors and traders determine the best day of the year to buy a stock… and the best day to sell – we’re giving everyone the chance to put the power of seasonality to work for them. I hope this taste has made you hungry to learn more… because I’ve released a new version of the Breakthrough 2025 recording that can still get you up to speed on the strategy even now that it’s over. Click here to learn more about Trade Cycles – and about the new Seasonal Edge system. That way, you can start harnessing these powerful seasonal cycles, planning the entire trade in advance, so you can buy and sell with confidence. All the best, Keith Kaplan CEO, TradeSmith |
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