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Strong Seasonality Stocks for June

These stocks have a long history of performing well in June, rising in the month at least 70% of the time and typically jumping by at least a few percent on average. Stocks mentioned: $ICLR ILMN $ORCL $INFY $SRCL $CIG $CASY

Seasonality is the study of how assets perform at certain times of the year. The stocks below have shown a strong tendency to rise in June, historically. That doesn’t mean they will rally this June, though. Seasonality is best used in conjunction with other forms of analysis and specific trading strategies, such as the ones discussed in the Stock Market Swing Trading Video Course.

Before getting into the best historical June stock performers, most stocks tend to be pretty flat, to slightly lower, in June. Over the last 20 years the S&P 500 index has moved up in June 53% of the time (number above columns), but the average return for all those months is -0.5% (number at bottom of columns). Chart courtesy of StockCharts.com.

S&P 500 seasonality for June

Strong Seasonality Stocks for June

The statistics below are based on the historic monthly opening and closing prices. Therefore, gains or losses within the month may be larger than those disclosed below. For example, a statistic may say the biggest rally on a monthly basis was 15%, but during the month the stock could have been up 20%, but dropped to only finish the month up 15% (intra-month losses could also be bigger). This is why it is also recommended traders combine these statistics with other strategies, which help control risk and lock in profits.

Buying at the open and close of the month is also somewhat arbitrary. There are more precise times to take trades. Focus on seasonal opportunities that align with strategies you are already using.

This is the raw data. How you interpret it, and what you opt to do with it, is up to you.

All stocks do at least 400K in average daily volume.

79% Rally Rate

ICON Plc (ICLR)

Price has rallied 15 out of 19 years, or 79%.

Average June gain, for all years, is 9.33%.

In the rising months (15) the average gain has been: 12.84%.

In declining months (4) the average loss is -3.8%.

Biggest gain is 56.96%, and biggest drop is -7.93%.

75% Rally Rate

Illumina Inc. (ILMN)

Price has rallied 12 out of 16 years, or 75%.

Average June gain, for all years, is 4.91%.

In the rising months (16) the average gain has been: 8.87%.

In declining months (4) the average loss is -6.95%.

Biggest gain is 24.39%, and biggest drop is -18.55%.

74% Rally Rate

Oracle Corporation (ORCL)

Price has rallied 20 out of 27 years, or 74%.

Average June gain, for all years, is 7.52%.

In the rising months (20) the average gain has been: 12.38%.

In declining months (7) the average loss is -6.35%.

Biggest gain is 49.7%, and biggest drop is -9.08%.

72% Rally Rate

Infosys Limited (INFY)

Price has rallied 13 out of 18 years, or 72%.

Average June gain, for all years, is 4.55%.

In the rising months (13) the average gain has been: 8.92%.

In declining months (5) the average loss is -6.8%.

Biggest gain is 21.55%, and biggest drop is -11.51%.

70% Rally Rate

Stericycle Inc. (SRCL)

Price has rallied 14 out of 20 years, or 70%.

Average June gain, for all years, is 4.15%.

In the rising months (14) the average gain has been: 7.78%.

In declining months (6) the average loss is -4.33%.

Biggest gain is 30.2%, and biggest drop is -11.32%.

Companhia Energetica de Minas Gerias S.A. (CIG)

Price has rallied 14 out of 20 years, or 70%.

Average June gain, for all years, is 5.43%.

In the rising months (14) the average gain has been: 12.15%.

In declining months (6) the average loss is -10.27%.

Biggest gain is 48.22%, and biggest drop is -15.74%.

Casey’s General Stores Inc. (CASY)

Price has rallied 19 out of 27 years, or 70%.

Average June gain, for all years, is 4.28%.

In the rising months (19) the average gain has been: 8.13%.

In declining months (8) the average loss is -4.87%.

Biggest gain is 20.79%, and biggest drop is -15.9%.

Final Word on the Strong June Seasonality Stocks

This is the raw data. What you do with it is up to you. All traders are encouraged to do their own research and apply their own strategies if utilizing these statistics.

Each stock has a different risk profile. While the ‘average gain’ statistic is a key metric, it doesn’t tell the whole story. Making 7% may seem attractive but when looking at the volatility it may be more than you are willing to handle. Therefore, look at the all the data when deciding what to trade. Also, apply other technical and fundamental metrics to help zero-in on exact entry and exit points. Seasonality is not covered in my stock trading course, because it is a not a requirement for successful trading. That said, it is an additional tool you can use.

Losing trades WILL happen. Don’t risk more than 1% of your trading account on a trade (risk = difference between entry price and stop loss price, multiplied by the number of shares). There is always a risk in trading, and you can lose much more than you expect (even when you think you are only risking 1%).

By Cory Mitchell, CMT

 

Disclaimer: This article should not be viewed as investment advice, and is not a recommendation for you to buy or sell. Past performance is not necessarily indicative of future performance.

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