Chapter IV: The Traditional Seasonal Analysis of Price Trends can still yield valuable predictive information. |
| Prev. Co. | Next Co. | |
|
| ||
| A non-typical Seasonal Pattern is shown by Intuitive Surgical, Inc.. The more usual seasonal pattern has the low prices during the pre-winter months. ISRGshows a strong seasonal bias of 40.96 percent, when averaged over the last 10 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. |
| Prev. Co. | Next Co. | |
| ||
| ISRG speculators might well avoid the month of February. 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. By this measure, the month of July appears favorable, offering a quick return averaging 20.26 percent. |
| Prev. Co. | Next Co. | |
| ||
| 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 Intuitive Surgical, Inc. during May have seen an average maximum gain of 45.44 percent at some time in the following 60 trading days. |
| Prev. Co. | Next Co. | |
| ||
|
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. The potential gain has been 40.96 percent from January to the next December. This is 44.68 percent when converted to an annual return. On the other hand, those who catch the seasonal wave wrong, can loose money at an annual rate of 491.5 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 ISRG roadmap and Summary of most effective indicators: |
| In the news, Wednesday, March 10, 2010: An unfavorable condition has developed with XTO Energy Inc., ticker symbol XTO. Also, there are breaking events concerning American International Group, Inc. (AIG) and Akamai Technologies, Inc. (AKAM) |