MONTHLY TRADING PICKS

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Trading Opportunity

January has proved to be an excellent month for traders around the globe as markets stabilised and companies got into the swing of the new year. It demonstrated particularly positive seasonal trends and our January analysis of Netflix Inc’s seasonal stock trends were spot on. February also shows signs of a couple seasonal gems that look very promising.

Using our web application, we have identified a solid seasonal market trend in Novo Nordisk A/S’s stocks from February 5th through to February 25. Novo Nordisk is a global healthcare company that produces 40% of the world’s insulin and aims to reduce chronic diseases worldwide, especially diabetes. Based in Denmark, it employs over 49,000 employees worldwide and operates in more than 175 countries. It is a well-established company and a solid stock for any portfolio.

Our unique algorithm has allowed us to predict, based on previous seasonal trends, how we can expect Novo Nordisk to fare from beginning February through to end February.

Below is a chart showing the typical pattern the stock exhibits during the course of a calendar year. These patterns can be discerned at a glance on a seasonal chart, which is calculated by averaging performance of the stock over the past 10 years. The horizontal axis depicts the time of the year, the vertical axis the level of the seasonal pattern (indexed to 100).

Source: Seasonax 

As the chart shows, the stock has historically performed very strongly in February and performed relatively unpredictably in mid-year months. If you log in to our app (https://app.seasonax.com) and have a look at this stock.

Not coincidentally, Novo Nordisk releases its’ financial statement for the full year of 2018 on the first of February. This report allows us to determine how the company is doing and where it’s heading. I would suggest thoroughly looking at this before investing, but also bearing in mind that February has shown consistently positive trends.


Novo Nordisk shows 80% winning trades

In the examined time-period, Novo Nordisk exhibits a very strong 80% Winning Trades and very little margin for error based on previous trends with only 2009 and 2013 being negative. Recent stock prices for Novo Nordisk in January suggest that this trend will continue into February. The chart below analyses yearly pattern returns from February 5 through till February 25.

 

There are plenty of other seasonal opportunities that are presenting themselves, especially in the first few months of the year. Stay ahead of the curve and utilise our app to maximise the potential of trades based on reliable data and quantifiable stock market trends.