Weekend Research, Monday Buys: How We Drive Price Action

You can profit from short-term seasonals. Published By Money & Markets, LLC. February 21, 2024 Published By Money & Markets, LLC. February 21, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Michael Carr]( Editor, [Money & Markets Daily]( [Weekend Research, Monday Buys: How We Drive Price Action]( Money & Markets Daily, Seasons drive much of our lives. We see this in dozens of instances… Kids get summers off and go back to school in the fall. Spring cleaning helps us get rid of the clutter that builds up over the winter. Seasons also drive parts of the economy. Retail sales peak in December. That includes auto sales. Dealerships intensify sales efforts toward the end of the year to meet annual quotas, clear out inventory and prepare for the next auto manufacturing peak in May. This allows time for cars to be delivered and prepared for sale again the following December. These trends repeat year after year. It makes sense then that traders have found ways to benefit. One of the oldest Wall Street sayings is: “Buy the rumor, sell the news.” We can see how that plays out in the auto sector. --------------------------------------------------------------- [Turn Your Images On]( [#1 Stock for Energy Crisis (Buy Now for Just $8)]( As the world suffers an oil shock… And gas prices rip higher… One tiny company could have the answer to the global energy crisis. It’s using AI to crack open the largest untapped energy source on the planet… 5X larger than the biggest oil field on Earth. [Act fast, this $8 stock could be moments away from appreciating considerably.]( --------------------------------------------------------------- Seasonality of Auto Stocks Auto stocks consistently outperform in April. That’s ahead of manufacturers releasing production numbers in May. Analysts make their best guesses about production ahead of the news. Expectations of a big number drive gains in the stocks. Then, the news is released, and the stocks sell off. It's no surprise that the same pattern appears at the end of each year. November is generally a strong month for auto stocks. December sales at dealerships hurt investor confidence as the stocks tend to underperform the broader market. This shows how we usually think of seasonal patterns … as unfolding over weeks or months. But it helps us as investors to take a wider view. You see, seasonals are simply time-based patterns. They can be long term, unfolding over generations … or short term, developing in just days or even hours. It’s the shorter-term seasonals that appeal to traders as they provide us with the opportunity to capture faster profits… Benefit From Short-Term Seasonals Some traders follow the price action near the end of the month. Research proves this is a consistently bullish period. One reason we should expect prices to rise at the end of the month is because this is when many investors make contributions to retirement accounts. Another reason is because fund managers are putting cash to work at that time. But this is not the only short-term seasonal trend. Traders are also generally bullish around holidays. We don’t seem to have any underlying rationale for this. But seasonals don’t need a strong rationale. As long as everyone expects something to work in the stock market, then that thing is likely to do so. Traders are also generally more bullish on some days of the week. This pattern does have a strong rationale. Many individual investors do their research on weekends. That’s when they have time off from work. In the old days, that provided a few hours to review the recommendations their broker provided. Now, it allows time to consider the research we access online. Before online account access was available, investors often placed orders to buy on Monday. Brokers executed many of these trades at the open. Others completed the buys later in the day. This created a bullish bias for Monday. Price action often continued higher for a couple of days before weakening near the end of the week. With online access, this pattern has shifted slightly. My friend and colleague Adam O’Dell has studied this seasonal tendency and discovered specific times of the day that are ideal for trading. Using his time-based pattern, Adam has developed a technique to generate significant gains in just a few days. Some of his best trades using his [Money Code]( produced incredible profits in just two days. Adam’s getting ready to reveal his research and show you how to take advantage of these weekly patterns. This [is your last chance]( to add your name to his guest list before Thursday's presentation at 1 p.m. Eastern time. [Michael Carr]( Editor, [Money & Markets Daily]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [WALL STREET THINKS IT HAS AN AI EDGE]( - [AMERICA'S FIRST GREAT INVESTOR]( - [THE STRONGEST PROFIT SEASON IS KICKING OFF]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. 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The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](