Marked on the calendar in late November is, “take a look at telecommunication stocks”.
Visiting any group of stocks during a “seasonal” swing is worth investigating. Lately LEAP has been on the watch list, add to that any of its competitive cohorts like PCS, MOT, RIMM etc. Someone mentioned to me JDSU, which apparently traded over $1,000 back in 2000 and now trades 12.00. That is incredible.
Also, Tellabs TLAB has been a day trading favorite providing great volatility. Sonus Networks SONS, which has basically copied the TLAB pattern to higher prices since 2008 came up in a quick search for more of the same and could offer great volatility in the upcoming months.
Just about all of these, and others, have made pullbacks. This pullback could be the opportunity that provides traders with a great trade. Of course the technical indicators are what should be traded here, and in reality what is driving the price motion.
Despite the seasonal allocation of money in certain sectors of the market at any time of year, this instance being the same, traders will not make money just because it gets colder unless prices move in their favor. Do not blindly buy or sell upon calendar events or past performance.
All of the stocks mentioned above made between 10-40% for the short term period of November to January of the prior year- 2009. Analyzing the technicals of the charts will offer insight to whether this may happen again and at what point the trading swing may begin. Some continued from this time frame lower, and some higher, but each rebound was a fairly significant percentage.