Charles’ Note: Sell in May and go away.
You’ve heard that one, right?
That would have been terrible advice this year, as the S&P 500 is up about 12% since the end of April.
But the old Wall Street maxim hits on an important point. There are times when it’s ideal to be invested, and times when it’s less ideal. This is true of the market and even more true when it comes to individual stocks.
Many stocks tend to follow repeatable annual patterns. This may have to do with their earnings calendar, with the seasonality of their sales, or even something as seemingly random as school vacation calendars. But the patterns hold… and they are tradable.
We’re living in the Age of Chaos. As I’ve been advising readers all year, it makes sense to take a more tactical approach to investing in this environment. That means focusing more on short-term trading windows.
Well, my friend and Freeport Society cofounder Louis Navellier has a few thoughts on this as well.
Louis was one of the very first quantitative investors, and his track record speaks for itself. Today, he’ll tell you how he’s using seasonal patterns to better time his entry and exit points in his top-rated stocks.
Take it from here, Louis!
My Best Stock Picks – on Steroids
By Louis Navellier, Senior Investment Analyst, InvestorPlace
You don’t need to be a genius to pick winning stocks. You just need the right tools.
I know because I’ve been doing it for decades.
Just look at this 1996 USA Today profile of me.
It highlighted the success of my investment firm, Navellier & Associates.
I was managing $1.5 billion in private accounts at the time. I had another $125 million in my mutual funds. And I was delivering some eye-catching performance.
Over the prior year, my Navellier Aggressive Small Cap Equity fund recorded a 44.6% return, compared with a 30.9% return for the average fund. That’s an outperformance of nearly 50%.
Even more impressive were my five-year returns.
As USA Today reported, from 1990 to 1995, I ranked second out of 409 money managers – with a total return of 324%.
And it wasn’t just my investment firm that was making headlines. My newsletters were, too.
According to Hulbert’s Financial Digest, my newsletter portfolios had produced a return of nearly 1,400% over the previous 10 years.
But as striking as they were, it wasn’t my returns that interested the press. It was how I was making them.
I wasn’t poring over company reports or charts like most money managers at the time. I was using computers to find growth stocks that outperform the market.
Over the years, this data-driven approach has pinpointed 18 recommendations that returned 10,000%… and 675 others that doubled.
It also helped me call the dot-com boom as early as 1994. (MarketWatch called me the advisor who “recommended Google before anyone else.”)
I’ve been able to invest early in the booms in gene sequencing… electric vehicles… software as a service (SaaS)… and more.
Members who took my recommendation in Intel (INTC) – and held on – could have made a fortune… we recommended it when it was trading for a split-adjusted $3.60.
I was early on the AI Revolution, too.
In the September 27, 2019 issue of Market 360, I wrote that AI was going to change the world.
I told readers about an interesting semiconductor company that would be at the center of this revolution—Nvidia (NVDA).
We’re up nearly 4,000% since then.
And I plan to hold this stock through the end of the decade.
The point is my system has made a lot of people a lot of money. It’s stood the test of time.
But while working with fintech company TradeSmith, I came across something that sharpens it even further.
Think my best picks—on steroids.
You can get all the details on how it works in my upcoming broadcast with TradeSmith CEO Keith Kaplan. (Find out more here.)
Today, I’ll show you how this breakthrough works… how it has massively improved my results in backtests… and how it’s flagging an imminent shift in the market later this month that you need to be aware of.
The Market Has Its Own Seasons
To the naked eye, the movement of stocks can seem random.
When you use computers to analyze the stock market, a different picture emerges.
Certain stocks have a history of going up on specific calendar dates—year after year—through bull and bear markets, manias, panics, wars, and pandemics.
By buying on seasonally favorable “Green Days,” you increase the odds of success when you’re buying socks.
In fact, some stocks trade so consistently—rising or falling during specific windows, year after year—you can map out a year’s worth of great trades.
There are stocks that climb on green days 80% of the time. Some even climb 100%. This includes years when everything else was falling.
To help you get a better idea of how it works, let me show you some real-world examples from stocks I’ve recommended in my model portfolios.
171% Gain in 11 Months
My Stock Grader system ranks stocks based on their growth potential.
Top-rated stocks have great earnings and sales growth, expanding margins, and high return on equity among dozens of other markers of strength.
On January 2, 2024, a company called IES Holdings (IESC) lit up as an “A” grade in my system—signaling it as a strong buy.
The company makes infrastructure products for AI data centers. So, it’s an interesting stock.
But my system lights up hundreds of stocks a year as potential buys. How do I know which ones have the greatest profit potential?
That’s where this new system comes in. It showed me that IESC was on a Green Day.
Starting on January 2, IESC has gone up 86% of the time. This has held true for the past 15 years.
If you had combined this signal with my Stock Grader, you could have made a 171% gain in 11 months last year.
And January isn’t the only seasonally bullish time of year for IESC. There’s a green bullish window in July, too. Then another one at the end of the year.
Or take another stock I’ve recommended, Powell Industries (POWL).
132% Gain in 7 Months
On April 13, 2024, my system gave POWL an “A” grade.
It’s another smart infrastructure play that’s critical to the AI Revolution. The company makes industrial-grade switchgear and other power distribution systems that data centers need to run smoothly.
Did that make it an immediate buy?
Using TradeSmith’s system, I’d have known the answer.
Turns out April 13 is also the start of a bullish seasonality window. Over the past 15 years, POWL has gone up during this window 93% of the time.
Sure enough, you could have made a 132% gain in 7 months.
And there’s another Green Day coming up in mid-October.
Over the past years, these kinds of gains have shown up across every sector—from industrials to AI…
- 102% in 13 months on General Electric
- 112% in 7 months on Nvidia
- 112% in 3 months on Argan
- 119% in 10 months on Stride
- 123% gain in 12 months on MakeMyTrip
- 182% in 8 months on Pro-Dex
These seasonality insights don’t just apply to individual stocks. You can use them on indexes like the S&P 500 and Nasdaq 100, too.
And right now, it’s flagging a market shift you should be aware of—a major turning point in the indexes starting July 30.
That’s why I’m doing two things…
First, I’m releasing a special briefing about the Green Day system… and how you can use it to find the best entry and exit points for your stocks.
Second, I’m sounding the alarm for July 30.
After a record shake-up in the market, I see a lot of people acting foolishly with their money today.
Either they’re recklessly buying the dip… or hiding out in cash.
Neither is a smart move—not with what’s coming.
Instead, I’m urging folks to take advantage of the coming shakeup by pairing my system with TradeSmith’s Green Day system.
As I mentioned up top, I’ll be joining TradeSmith CEO Keith Kaplan in a special broadcast to share the details of how it works… and how you can use it to make some “rapid-fire” type investments during the market regime shift at the end of the month.
It airs on Tuesday, July 22 at 10 a.m. Eastern. And as a Freeport Navigator reader, you can join our growing interest list here.
Once you do, you’ll be able to pull up Green Day charts for your stocks and try it out yourself—all free of charge.
It’s an opportunity to play around with the tool… try it on the stocks you own or are thinking of buying… and “kick the tires,” so to speak.
But please remember, time is short. Make sure you’re on the list before the market shifts on July 30.
I hope to see you there.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Argan, Inc. (AGX), IESC Holdings, Inc. (IESC), MakeMyTrip Ltd. (MMYT), NVIDIA Corporation (NVDA), Powell Industries, Inc. (POWL) and Pro-Dex, Inc. (PDEX)
P.S. I hope you don’t ignore my warning of a regime shift for the market at the end of the month. This is something that’s happened every year over the past 15 years at this time of year.
It’s not a reason to panic. While the S&P 500 will likely take a hit, there’ll be chances to capture gains on stocks when their Green Days trigger.
That’s why I’m sharing it right with you. It’s important you get positioned immediately.
I’ll be getting into all the details—including how you can profit—during next Tuesday’s event. All I ask in return is that you register your interest. Once I hear from you, I’ll grant you access to TradeSmith’s Green Day seasonality tool so you can try it out for yourself.