When interest rates are rising financial stocks tend to gain. The higher interest rates charged can lead to higher margins on financial products which can boost the profitability of financial companies. One of the ways that we can use Seasonax is to compare different stocks to see if that can help with the timing of any entries.
If you look at the comparison between the Bank of America Corporation and the Bank of New York Mellon Corporation you can see that as we head into the Fed’s next interest rate meeting that the Bank of New York has weaker seasonal strength than the Bank of America. So, have you considered how seasonals can help you in your trading to potentially help with timing your entries?
Major Trade Risks: If there is a major change in the US economy then the seasonal patterns for both stocks may be different to previous years. Also, any particular good or bad news for either stock will obviously influence prices.
HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.