Telcom Seasonal Trade Update

Since the price low on November 22, 2010, when the seasonal move was initially called, regardless of instances of lower prices to follow, to the high price so far in todays trading.

telcom_seasonal_short_12_10_10.png

All but one stock has made profitable moves higher. JDSU outperforming the group so far using the previous criteria, and LEAP underperforming.

Lets take a look at the returns on price motion with a different analytical set up in mind. Since November 22, 2010, measure the move from the lowest price traded to highest price traded till today.

telcom_seasonal_long_12_10_10.png

In this scenario, if you were trading the stocks with the longer term trend in mind, you may have averaged in till the end of the month of December where some of these stocks continued to sell off and shake people out. This shows that there is no line in the sand on timing with this particular analysis, seasonal moves, but the trend seems to still be intact for this trade.

So far, most of these stocks have made a good fraction of the seasonal gains expected into the end of the year, with three weeks still left. There are probably many others that are equal or better to this performance in the sector.

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