Chapter IV: A look at Traditional Seasonal Analysis of Pioneer Natural Resources Historical Prices identifies the best and worst months to be invested. |
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| American Airlines does not fit the typical Seasonal pattern. For the average common stock, low prices are most likely previous to the month of November. Averaged over the last 13 years, PXD exhibits a strong spread between the high and low months of 21.04 percent. 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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| PXD speculators might well avoid the month of January. 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. A quick 11.33 percent gain has rewarded those who have speculated during the month of April. |
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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. American Airlines speculators who have taken positions starting in March gain 37.93 percent, judged by the maximum price attained during the next three months. |
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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. The potential gain has been 21.04 percent from February to the next June. This is 63.12 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 31.6 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 PXD roadmap and Summary of most effective indicators: |
| In the news, Friday, March 12, 2010: An unfavorable condition has developed with Convergys Corporation, ticker symbol CVG. Also, there are breaking events concerning ConAgra Foods, Inc. (CAG) and Pre-Paid Legal (PPD) |