Editor’s Note: Eric Fry here. Stock market seasonality is often discussed, with some sayings based on historical truths while others lean toward superstition.

Despite this, stocks do display seasonal patterns throughout the year.
Understanding these patterns could improve your trading outcomes, which is why I’m excited to share fresh insights from our partners at TradeSmith.

On January 8th, TradeSmith’s CEO, Keith Kaplan, will reveal how you can identify significant price movements in 5,000 stocks with an impressive 83% backtested accuracy—regardless of how the market shifts.

This tool is so transformative that Keith refers to it as his “life’s work,” making it a can’t-miss opportunity. Sign up for this exclusive webinar here.

Plus, if you register, you’ll get to use the tool for free!
In the meantime, I’ve asked Keith to explain more about TradeSmith’s notable breakthrough.

Take it away, Keith…

A new year brings many uncertainties, and uncertainties can unsettle the market.

For instance, during the third quarter before elections, investor confidence was low, evidenced by a soaring VIX index. Uncertainty surrounding the Fed’s decisions added to the unease.

Yet once clarity emerged, the market surged forward energetically.

This illustrates the importance of knowledge in overcoming the fear of the unknown.

While some aspects of 2025 will remain uncertain until we encounter them, at TradeSmith, we’ve made the greatest breakthrough in our history…

We discovered a method to determine the best times of year to buy and sell any asset, based on measurable, actionable patterns.

Here’s how it works.

A Time to Plant

To the casual observer, stocks may seem volatile, changing dramatically from day to day, regardless of the news.

However, some stocks display consistent trends, rising or falling within specific timeframes each year. You can effectively plan out an entire year’s worth of trades right now.

This process resembles how farmers organize their planting schedules. While they cannot predict the weather daily, they do know the best times of year to plant for optimal growth—spring, specifically, in the Northern Hemisphere.

For thousands of years, humans have harnessed these reliable natural cycles without knowledge of the Earth’s orbit.

Farmers typically prepare and sow seeds from March to May, care for their crops from June to August, and harvest from September to November, depending on the crop type.

This reliability contributes to a cycle in agricultural pricing, where harvest time typically increases supply, putting downward pressure on prices.

Similarly, stocks also follow seasonal cycles, and like farmers, you can know down to the very day when it’s best to buy or sell a specific stock.

We will conduct a webinar in January detailing this strategy, and we’ve created a platform where registrants can utilize TradeSmith’s Seasonality tool on their stock symbols. To get started, register here for the webinar and receive free access to seasonality analysis on your stocks.

This unique tool highlights consistent historical trends that can guide your decisions on stocks you’re monitoring, those you currently hold, or new options you’re considering.

As the new year approaches, a fresh wave of trading cycles is on the horizon…

Start the Year Right

Consider Netflix (NFLX), for instance.

This well-known streaming stock typically sees significant price increases beginning in January. The first of its seasonal trends is marked in green on our TradeSmith Seasonality chart:

So, why is January through April such a promising period for NFLX? It could be linked to early-year earnings reports or the release of new popular shows.

The exact reasons may remain uncertain, but what stands out is that the stock price has increased by an average of 19% between January 16 and April 5 over the past 15 years. This statistic allows us to draw informed insights about NFLX.

Will the trend replicate itself in 2025? There are no guarantees, but it’s noteworthy that this bullish seasonal pattern has experienced a 93.3% success rate historically.

Let’s consider another example—Fortinet (FTNT).

FTNT appears to be a strong buy in January, typically increasing 3.3% on average from January 5 to January 20, followed by a 15.4% gain from January 29 to April 3, boasting an 80%+ success rate during both timeframes. It seems this stock is consistently seasonal, with numerous high-probability patterns emerging throughout the year:

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Unlocking Stock Success: Harnessing Seasonal Trends for Profitable Trades

Spotting Seasonal Patterns in Stocks

Many investors overlook the impact of seasonality on stock performance, but it can be a game changer. Recently, through a quick analysis with TradeSmith’s screener for seasonal trends, I identified 22 stocks poised for bullish activity starting in January, with gains averaging between 10% to 20% during the initial months.

Maximizing Your Trading Strategy

This information encourages a granular approach to trading. While many recognize the seasonal tendencies of various sectors—like summer-centric performance—few can pinpoint the optimal days for buying and selling specific stocks. TradeSmith provides that advantage, marking certain days on our charts as prime opportunities.

A Major Breakthrough for 2025

TradeSmith is on the brink of a significant advancement in trading strategies. This method allows us to propose trades with greater confidence than ever before, enabling us to identify which stocks will present high-probability trading opportunities months in advance.

Proven Strategy: A Simple Approach

Our focus is on developing a trading strategy that can achieve a success rate of at least 80%. Through extensive backtesting, we found that the simplest methods yielded the best results. Our refined two-step process has provided a consistent positive return over 18 years—an average of 5.96% overall with an average hold period of just 19 days.

Remarkable Returns Over Time

This success accumulates into an impressive annualized return potential of 118%. Even the worst-performing year in our tests—2007—yielded an average trade return of 2.5% and an annualized return of 37.9%. These figures outshine the S&P 500 returns significantly, especially during challenging years.

Across 18 years of implementing this strategy, we observed an extraordinary 857% growth, far exceeding the S&P’s performance over the same timeframe.

Join Us to Learn More

On Wednesday, January 8, at 10 a.m. Eastern, I will present a detailed look at this groundbreaking strategy and explain how to use it to identify the most reliable stocks for trading in 2025—at their most opportune moments.

Register now to discover these new seasonality signals—our significant breakthrough for 2025—and try out the tool for free.

Wishing you success in your trading endeavors,

Keith Kaplan
CEO, TradeSmith