Seasonal Plays

One of the sections of my Stock Traders Almanac regards seasonal sector plays. It is because of this section that I purchased the QQQQ calls in April, and have been trading them successfully ever since.

There are three seasonal index plays listed to start at the end of July. Biotech (BTK) play ends the begining of March and averages a 15.6% return the past 5 years, and 38.3% over the past 10. The Gold and Silver (XAU) play ends the end of September and averages a 20.8% return the past 5 years, and 20% over the past 10. Lastly, utilities (UTY) end the beginning of January and average 13.4$ return the past 5 years, and 20% over the past 10.

If you are not day trading, buying the index fund may work for you, however what I will be doing is finding a few stocks in each sector that I like, and follow them over the next few weeks to look at for day trades. Once I find them, I will start covering them in my Day Trading Research blog.

Always perform your own due diligence before making any investment.