Monthly trading picks

Seasonality vs Trade War Effects

Trading Opportunity

In our trading opportunity of august we are focusing on a company which is focusing on developing programmable devices and associated technologies. All eyes on Xilinx Inc. But there is a challenge this pattern will face: the trade ware between the U.S. and China.

Since Xilinx is a supplier of key components for mobile phone networks, it will be interesting how the current trade war between China and the US will affect the pattern. On the 26th of July Xilinx asked the U.S. to allow broader shipments to Huawei, due to being blacklisted in May 2019.

On the 8th of August the annual shareholders meeting will take place, which will indicate if the identified seasonality will take place in 2019 again.

Xilinx Chief Executive Officer victor Peng seid: “We determined that we could lawfully resume shipping select products. What we’ve applied for is for some additional products but certainly not all of them.”

 

In the last 10 years Xilinx two main patterns are at the start of the year and again at the end of summer. With +101.59% annualized return and a strong 90,00% winning trade, this was a strong pattern in the past, but we will see how much it will be affected due to unusual political affairs.

The bar chart below illustrates the returns per year, including a detailed statistic of the profit. While the pattern is quite stable, 2016 didn’t turn out so well for Xilinx.

 

Eventhough we did pick this strong pattern of the past, there are factors which could remove or even negate the pattern. We are looking forward to find out more soon.

You want to dig deeper? Check out Xilinx in our Seasonax Web App.