Netflix stock reassures seasonal market investors as upcoming trend shows exciting opportunity for January.
Although investors still had a rather sceptical attitude throughout November and December, this last week has ushered in more confidence in the market, as a more investor-friendly patterns have begun to emerge. The January effect is the time of year where the markets awaken, and stock prices start to rise again.
In this article we will highlight a stock that shows promising seasonal trends in January. Using our web application, we have analysed Netflix Inc.’s trend for January 3rd through to January 31st. Netflix is a popular American media-services provider that has over 137 million subscribers worldwide, they provide movie and tv streaming services through an innovative online platform that has shaken traditional media outlets’ business models. Netflix stocks have done remarkably well in 2018 but dropped off in November of this year and then rebounded in late December. Our unique algorithm has allowed us to predict, based on previous seasonal trends, how we can expect Netflix to fare from beginning January through to end January, and we think it looks very promising.
Leaving behind the doubt and uncertainty that was so prevalent in stock markets late last year, especially in the U.S, a solid seasonal trend that demonstrates consistency even in harsh market environments is a welcomed arrival.
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).
As the chart shows, the stock has historically performed very strongly mid-year but has consistently dropped off at the end of year, spiking back up in January. This trend of dropping off in November and December, then predictably and rapidly going up in January provides a fantastic opportunity to take advantage of for short term gain.
Although nothing is certain, the December yearend rally coupled with the potential of a lucrative January effect has reinvigorated the market and demonstrated a cautious optimism in the consistency of certain trends.
Netflix Inc. shows 90% winning trades
In the examined time-period, Netflix Inc. exhibits a very strong 90% Winning Trades and very little margin for error based on previous trends with only 2015 being negative. Recent stock prices for Netflix Inc. in late December suggest that this trend will continue into January. The charts below analyse yearly pattern returns for Jan 3 to Jan 31 as well as demonstrating statistically the annualised return and the winning trades in percentage.
There are plenty of other seasonal opportunities that are presenting themselves, especially at this time of 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.