Seasonality can be a game-changer for traders who know how to leverage it. Recognizing patterns in sectors and individual stocks during specific times of the year can provide an edge in your strategy.
While seasonality isn’t a guarantee, it’s often a useful signal when combined with technicals and market context.
Let’s dive into the current setups for tradable examples along with today’s lesson…
Consumer Discretionary is showing relative strength — making it one of the most promising sectors to watch. On the other hand, Consumer Staples, Utilities and Energy are lagging, with lower profit factors and weak seasonality trends.
These insights help narrow our focus on where opportunities are likely to emerge in the short term.
Opportunities for Next Week
One standout opportunity is Amazon (AMZN).
The stock is trending higher and showing resilience despite some broader market hesitations. Based on its seasonality and technical position, I’d consider buying calls 23-30 days out around the 70 Delta, and stop just below key support.
During Thursday’s VIP room, I suggested the $227.50 strike about a month out. It’s a little overextended right now but not by much — making it worth watching for a potential pullback or continuation.
On Monday, look for a trade in AMZN that’s about a month out with a delta near 70, and put it on a watchlist to paper trade it.
Another interesting setup is Marvel Technology (MRVL). This stock has been moving smoothly in a bullish pattern. The ideal play here is also calls that are 23-30 days out with a Delta near 70.
It’s a straightforward trade with solid potential as long as market conditions hold steady.
For those who prefer cheaper options, keep an eye on Chewy (CHWY) and follow the same rules above. It’s starting to consolidate, and seasonality supports a potential breakout.
Seasonality helps us spot these opportunities, but it’s important to remain flexible.
For example, while Tech sector stocks continue to drive market gains, it’s concerning that volume isn’t keeping up with price momentum. If Tech falters, vulnerable sectors like Real Estate and Utilities won’t be able to pick up the slack.
That kind of imbalance makes it critical to manage trades with tight stops and disciplined entries.
The takeaway?
Use seasonality as a guide but don’t rely on it alone. Combine it with technical analysis, market context and sector strength to find the best setups.
Stocks like Amazon, Marvel and Chewy offer promising opportunities right now, but always stay ready to adapt as conditions change.
And don’t be afraid to paper trade these ideas until you get your feet wet.
I hope that helps!
Roger Scott
Roger Scott Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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