The stock market can seem like a tricky puzzle. All those numbers and trends can be tough to figure out.
But, did you know that the stock market has patterns that repeat over time? These patterns, often called “seasonality,” can give us useful clues about what might happen next.
What is “seasonality?”
It’s when something happens regularly at the same time every year. In the stock market, some stocks might go up or down during certain months. This isn’t just a random thing — it can be because of reasons like changes in government rules, company earnings reports, or even how people are spending their money.
Knowing these patterns can be really helpful for people who buy and sell stocks. If traders understand these patterns, they can make better choices about when to buy or sell. It’s like having a map that helps you know which way to go.
But, it’s important to remember that these patterns aren’t perfect. Just because a stock has gone up in the past during a certain month doesn’t mean it will always happen that way. Other things like changes in the economy or news about the company can also affect the stock’s price.
A stock blueprint
I recently ran a study that aimed to find out the most consistent stocks over the past decade. And what I ended up with is what I consider to be the finest list of stocks ever assembled.
I call it my “Income Calendar” because it’s got dozens of top name stocks that have gone up on the same day every year for more than a decade.
I can already hear you saying, “OK, that’s great in theory, Jack. But how does it perform?”
I’m glad you asked, because as of this week, my readers and I have placed 8 trades according to this stock calendar — and all 8 trades have come back winners.
Now it’s important to note that no strategy is perfect and I’m sure at some point we’ll clock a loser. But I think you can see just how valuable it can be to discover and use repeating patterns in the market.
Wrapping it all up
Discovering repeating patterns in the stock market can help us understand how and why stock prices move the way they do.
They show us that there are bigger trends going on — and it becomes easier to ignore the daily ups and downs that sometimes drive us to make bad decisions.
And having a “blueprint” like my Income Calendar can be a welcome boost for traders that are looking for the discipline of a proven strategy.
If you’d like to start taking advantage of established patterns in the stock market, you can check out my Income Calendar here.
Trade well,
Jack Carter
Jack Carter Trading