Seasonality is always on a traders radar in December. The Santa Claus rally and all.
In this seasonal vein, I ran a scan of a decent database of liquid stocks with the following idea in mind.
1) The percentage return for the last 20 trading days of the year.
2) Look back the last 8 years
3) Only show me stocks that have either all positive or all negative returns in those 8 years
As the Santa Claus rally is a seasonal feature of the markets it made sense to me to find stocks that do the same thing. Might as well get as many odds in my favor as I can.
So here’s what I found.
17 stocks have had positive returns in the last 20 trading days of the year, 8 years in a row.
The top performer was AAR Corp – symbol AIR. It’s average return over the last 8 years was a whopping 13.98%. Pretty impressive for 20 days. More impressive was the consistency. The range of returns was between 7% and 23%, so no 98% wild card distorting the pattern.
Of course there’s never any guarantee this will continue, but it’s impressive to see.
AIQ TradingExpert Pro’s Expert Design Studio was used to create the scan. FREE trial at
http://aiqsystems.com/PLSbrochure2.htm
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