Using the Seasonax screener function, we will automatically generate a list of the most promising investment opportunities. Firstly, choose your market. Let’s look at the S&P500. Secondly set your limits. You can look for seasonal opportunities that are starting from today, tomorrow or even in one month. Let’s look at Jan 14. Set the history of the data that you want to examine. Let’s go for the past 15 years. Set the minimum and maximum time period that you want to hold the instrument ranging from minimum 15 and max 90 days we will go for 31-60 days. And as the last step, select the filter that will screen your results and remove all patterns with lower rates of winning trades. Let’s go for 80% of winning trades.

We see that over the last 15 years Netflix has gained an annualised return of 612.66 % of the time and made over 20% in returns on average.

Now the recent sell-off in stocks has been on the worry that the Fed will be hiking interest rates into a US economy that is slowing down. The prospect of the runoff of the balance sheet as interest rates move higher has investors leaving tech stocks. This is a headwind for Netflix, but if that mood changes the strong seasonals are there.

Major Trade Risks:

  • If interest rates are seen to be rising too fast, that could cause a broad sell-off in stocks in the near term.
  • Any bad news for Netflix could also weaken the stock.

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 and get started right away.