MONTHLY TRADING PICK

Increase your trading consistency by taking advantage of seasonal trading opportunities

Trading Opportunity

Although May is known for the beginning of seasonal effects such as the “Sell in May” phenomenon, there are many individual stocks that exhibit profitable seasonal patterns during this time period.

One of this stocks is NuVasive, a medical devices company based in San Diego, California. The company focuses on developing minimally-disruptive surgical products and procedurally-integrated solutions for spine surgery.

The stock price of NuVasive has consistently spiked during May and June over the years. Will the seasonal trend reoccur in 2019 as well? No one knows the answer to that question for certain, but from seasonal perspective there is a high statistical probability that it does. Let us take a closer look!

Using our web application, we have identified this solid seasonal market trend in NuVasive stock from May 22nd through June 20th.

Below is a chart showing the typical pattern the stock exhibits in the course of a calendar year. These patterns can be discerned at a glance on a seasonal chart, which is calculated by averaging the performance of the stock over the past 14 years. The horizontal axis depicts the time of the year, the vertical axis the level of the seasonal pattern (indexed to 100).

Source: app.seasonax.com

As the chart shows, the stock has historically performed very strongly during  May, rallying sharply until the end of June. Its performance throughout the rest of the year (annualized rest of 1.96%) lacks the power of the dramatic seasonal spike we see earlier in the year.

85% of the trades in NuVasive during the seasonally strong period were winners

In the seasonally strong time-period, 85% of the trades in NuVasive were winners generating an average return of 8.06%. The charts below show the  average pattern return from May 22 to June 20 as well as the average annualized return and the percentage of winning trades.  

The following bar chart illustrates the pattern returns for the time period May 22 to June 20 for every year since 2004. Blue bars indicate gains, red bars losses.

 

There are plenty of other seasonal opportunities available, especially in the first few months of the year. Stay ahead of the curve and use our Seasonax Web-App to maximize the potential of trades based on reliable statistics and quantifiable stock market trends.