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Trading Opportunity

Lufthansa exhibits particularly strong growth in the first half of September!

We all know about the seasonal truism, that most stock markets around the world traditionally show weak performances during the summer months. Luckily, we have resources that help us to overcome this difficult period and find profitable investment opportunities - regardless of the general trend.

This time, we have used our application to analyze a giant of the aviation industry - Deutsche Lufthansa AG. Based on the number of transported passengers, the German corporation is the biggest European aviation company.

The company used to be state-owned but became a public corporation in the 1990s. Eurowings, Swiss and Austrian Airlines are all subsidiary companies. It is a Star Alliance member and is listed on the German DAX.

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. The stock price in 2017 has increased by more than 50%, compared to 2008. However, there is still an opportunity to pick out a time of the year that has shown stronger growth than the year-round average. The time-period associated with the strongest seasonal performance is highlighted on the chart in blue. It begins on August 29 and ends on September 15 .


Lufthansa Shows 100% Winning Trades

In the examined time-period, Lufthansa exhibits an incredible 100% Winning Trades, incurring losses not once during the examined time period. Not only the frequency is exceptional in this seasonal pattern, the annualized return of 222.83% is truly remarkable.

The bar chart below illustrates this fact. Red bars indicate years in which negative returns were posted, green bars indicate years with positive returns. As you can see, there is not a single red bar.