Amazon (AMZN) and Starbucks (SBUX) have held talks about launching a new co-branded lounge that combines cashier-less Go stores with cafes according to Business Insider. This news prompted a quick look at Starbucks seasonal chart and it is extremely strong at this time of year. It is not clear why this should be the case. However, it is notable that certain stocks tend to rise at certain times of the year in a very reliable and predictable way. Of course, it is great when a specific reason can be identified. However, some investors are content to just trade the seasonal pattern even without a reasonable explanation.

Over the last 10 years, Starbucks has risen 10 times between October 20 and December 07. The average gain has been +8.89%. The largest gain was +19.40% in 2012 and the smallest gain was +0.99% in 2013.

Major Trade Risks: The main risk to this trade is a sharper correction in stocks on a potential Fed taper announcement in November.


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