Netflix tends to have a very strong January as we head onto the end of the year. If the Fed talks back market rate hike expectations this week then it would not be a surprise to see more upside in equities. Last weeks CPI print was high, but the market was relieved it was not as bad as feared. If the Fed taper faster this week but talk back against rate hikes then US stocks could still rise higher.

Over the last 15 years, Netflix has risen 13 times between Dec 01 and Feb 01. The largest gain has been +24.28% in 2012 and the largest loss -24.95% in 2015. The percentage of winning trades has been 92.86%. The annualised return is 261.01%.

Major Trade Risks: The main risk to this seasonal pattern would be if omicron variant fears result in strong risk-off trading which could send stocks lower again.

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