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| Archer-Daniels-Midland does not fit the typical Seasonal pattern. The more usual seasonal pattern has the low prices during the pre-winter months. A 9.41 percent spread has rewarded the seasonal investor for nearly 27 years. For this chart, price plots for each year are traced on top of each other. Each month's value is adjusted to the mean price for the particular year. The orange line represents the average monthy price expressed as a portion of the annual price. |
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| Investors in Archer-Daniels-Midland should consider staying in cash during July. Here, the profitability of the month is defined as the percentage change between the mean price on the first day of the month and the mean price on the last day of the month. So the figures displayed here refer to the average change during each month, rather than changes between months. |
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| The 'Monthly Profitability' discussed above applies to holdings during the course of a single month. Another, perhaps more realistic evaluation is the one charted here. Here the value evaluated is the highest price reached at anytime during the next quarter. Investors shrewd enough to invest in Archer-Daniels-Midland during October have seen an average maximum gain of 16.44 percent at some time in the following 60 trading days. |
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This plot of the average monthly price as a proportion of the average yearly price removes the year-to-year secular trend. However the within-year trend is still intact, so it is expected that the December value might be higher than the January average, for a healthy company. Over the span of 3 months from September to December a gain of 9.41 percent has occurred historically. This is an annual rate of 37.6 percent. Investing 'against the tide' of the seasonal trend can cost an annualized 12.55 percent. Before making any decisions based on the standard 12 Month Seasonal Calendar, be sure to check the characteristics of the 24 Month Political Election Calendar. Research shows that many characteristics of the traditional seasonal averages are actually induced by events in the 24 month political cycle, so the characteristics of even versus odd numbered years may be quite distinct. |
Much Deeper Market Timing Analysis with ADM roadmap and Summary of most effective indicators: |
| Wednesday, March 17, 2010: We have news on Walmart, ticker symbol WMT. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning ACM Income Fund and CIGNA Corporation. From the News Archive: (3/17/2010 ) A favorable event happened at LoJack Corp. Meanwhile, bad news came from Prudential Financial, Inc., Patterson Companies, Inc., and General Electric. |