Editor’s Note: Eric Fry here, excited to share how TradeSmith’s latest innovation can enhance your trading strategy in the new year.

On January 8 at 10 a.m. Eastern time, TradeSmith CEO Keith Kaplan will introduce a groundbreaking tool that predicts major stock movements with an impressive 83% backtested accuracy. This system identifies specific days for potential profits and allows users to analyze seasonal trends across 5,000 stocks, potentially multiplying gains by five to ten times on each position.

To participate in this important presentation, click here. Best of all, sign up to try out the tool for free!

Before this event, TradeSmith’s Editor-in-Chief Luis Hernandez shares insights on why understanding seasonal trading patterns and market cycles could be the key to achieving success in 2025.

Luis, the floor is yours.

While the concept of trading based on cycles may sound unusual, it’s rooted deeply in human history.

People have long been intrigued by cycles, observing them in various forms. This fascination led to the development of calendars and clocks, enabling societies to optimize their farming and hunting practices based on seasonal patterns.

One of the most captivating examples of this cycle-watching is Stonehenge.

This iconic English monument is renowned worldwide.

One prominent theory suggests that Stonehenge was designed as a means to track celestial events, as its entrance aligns with the summer solstice sunrise. This indicates that its builders meticulously observed seasonal changes over decades, essential for their survival 5,000 years ago.

Humans constructed Stonehenge to better understand seasonal patterns, which were vital for agriculture and survival.

In today’s world, we possess the tools to analyze these cycles without building grand structures. Our access to data and analytical capabilities far surpass those of our ancestors.

At TradeSmith, we are dedicated to examining market trends, leading us to uncover significant seasonal patterns that influence stock movements every year.

Understanding Market Seasonality Through Data

Investors often hear tales about market cycles cultivated over the years. Think of terms like the Santa Claus Rally, the January Effect, and the adage to “sell in May and go away.”

Historical data reveals that September typically sees declines, while November to April tends to deliver the strongest returns for the S&P 500.

These phenomena illustrate “seasonality” in the stock market: predictable trends of growth or decline that recur so regularly, they have evolved into expected annual patterns.

However, our findings reveal that seasonality isn’t confined to major indexes; every stock has its own growth or decline cycles that repeat year after year.

Tesla (TSLA) serves as an exemplary case.

This notable tech stock displays remarkable volatility among the “Magnificent 7” mega-caps. Despite the wealth fluctuating around TSLA in recent years, one pattern remains clear:

Between May 22 and July 1, Tesla often outperforms, boasting an average gain of 17.97% during this timeframe; this trend has held true 100% of the time since TSLA’s IPO in 2010:

Unlocking Seasonal Trends: A New Tool to Boost Your Trading Strategy

Analyzing Summer Spikes: Tesla’s Winning Pattern Continues

For 14 consecutive years, summertime price surges have been a consistent trend, even before the pandemic highlighted this pattern. In 2024, Tesla (TSLA) maintained this legacy, climbing over 16% in a five-week span.

The chart above showcases a recent innovation by TradeSmith: the new Trade Cycles Seasonality tool.

Designed by a dedicated team of 74 researchers, this user-friendly tool analyzes stocks, indices, commodities, and currencies. It pinpoints strong seasonality trends with starting periods that can be narrowed down to the day.

Examining Walgreens: A Profitable Seasonal Trend

Walgreens (WBA) presents another compelling case. Over the past 15 years, from October 7 to December 16, Walgreens shares have increased 93.3% of the time, yielding an average return of 9.2%. This year, the stock outperformed expectations, rising from $8.61 on October 7 to a peak of $10.74 on October 16—an impressive gain of nearly 25% in just eight days.

Harnessing Seasonal Opportunities for Profit

Both Tesla and Walgreens exemplify the potential of the Trade Cycles tool. It reveals seasonal cycles in various financial assets, including stocks, currencies, and commodities.

Through detailed data analysis covering thousands of assets and conducting 50,000 tests daily, our system identifies optimal trading opportunities based on historical movement patterns across 5,000 stocks, regardless of market conditions. Remarkably, this tool boasts an 83% win rate in backtests.

Our extensive backtesting reveals that trading during the most favorable seasonal windows is not just innovative; it’s shown to be highly effective.

Over an 18-year duration, these seasonal trades have generated an astounding 857% total growth. This performance is significantly more than double the S&P 500’s returns during the same period. Even the lowest-performing year in our backtests—2007—yielded an average return of 2.5% per trade and an annualized return of 37.9%, surpassing typical S&P 500 results, especially noteworthy during that tough economic year.

Seeking Your Seasonal Trading Edge

The next question is… how can you leverage this tool for your own gains?

Discover the Power of Seasonality for Enhanced Trading

Currently, you can click here to gain free access to TradeSmith’s new Seasonality tool until January 8, 2025.

Join us on Wednesday, January 8, 2025, at 10 a.m. Eastern for our Breakthrough 2025 webinar, where TradeSmith CEO Keith Kaplan will explain how this tool can assist in determining the optimal days to buy and sell stocks.

As the new year approaches, a new cycle of seasonal opportunities is poised to begin.

New subscribers will obtain direct access to the Seasonality tool along with the top 50 seasonal stock recommendations for this year through our Trade Cycles elite trading research service.

Register now to reserve your spot for the event and explore the Seasonality tool at no cost before the webinar.

Looking forward to seeing you there!

Best regards,

Luis Hernandez

Editor in Chief, TradeSmith