What Stock Trends Are Taking Shape for this Year’s Summer Season?

 

Many stocks or industries have seasonal trends, and summer is certainly no exception to that rule. Historically the stock market slows during the summer season as families vacate their homes for road trips and visits to entertainment destinations. There is even a well-known saying among investors: “Buy in May and go away”.

Summer is Here – What Stock Trends Are Shaping Up?

Although trading seems to slow during the summer months due to vacations and other seasonal activities, those months have also been known to experience at least a respectable rate of growth during the same period.

Many large investors shed higher-risk elements from their portfolios as they prepare to take time off since they will not be as actively monitoring market activity.

What are the Bright Spots of Summer Stock Trends?

Over recent years, some of the winners during summer trading periods include segments in or closely tied to health care, utilities, and energy markets. Those markets that tend to drop are such stocks as material and industrial sectors along with a general lag in consumer discretionary spending. Some of these appear logical for many traders since travel and summer pastimes focus traders and their families away from large purchases as dollars are put to work elsewhere.

Sam Stovall of Standard & Poor’s Equity Research summed it up quite succinctly in stating “a lot of investors are more focused on their tans than their portfolios.”

There are certainly exceptions that tie to where families are spending those dollars: hospitality, entertainment venues, and travel. Whether that means an expensive trip abroad, vacations to popular theme parks, or just getting away from home for a few days, travelers hit the road or take to the air in droves while the weather permits and children are away from school for a few weeks or more. Companies engaged in these markets make a large percentage of their profits during the summer months, much as retailers look to the holidays for their primary revenues.

Other highlights for summer investors are outdoor outfitters such as Cabela’s and “big box” stores such as Lowe’s and Home Depot that supply consumers with grills and accessories, yard care equipment, and outdoor furniture.

Summer Stock Trends and Tools

Timing can be an incredibly valuable time as traders watch for lowering stock prices to time buys just as values will begin to trend up. That may mean waiting for the summer downward trend to begin its reversal and start climbing in the Fall.

If you’re a vacationing trader there are some tools to consider that can keep you in touch with your market segments while you travel:

Portable computers in the form of systems like the Microsoft Surface Pro or high-powered tablets and iPads that combine the power of a computer with the portability of a tablet.

AMPL Smart Bag – don’t worry about missing a trade due to low power when you latch on to this bag equipped with SmartBatteries to keep your tablet, smartphone, or laptop ready whenever you need them.

goTenna – if you have a device but no connectivity you can’t make your trades when the time is right. This simple and portable antenna-like device lets you sync your Android or iOS device via Bluetooth-LE to put you on the air for trading where there is no cell coverage or Wi-Fi available.

With devices like these, you’re able to access your online broker anytime, anywhere. Enjoy the summer season while staying connected to maximize your trading success.

SureTrader gives our clients the services and capabilities needed to optimize their trading activity. Our selection of trading platforms includes a free web-based trading environment supporting both Android and iOS devices. SureTrader’s desktop software has powerful advanced features that rank it as the best trading platform available.

Our superior level of support means contacts with real people to resolve trader problems quickly and to your complete satisfaction. Lightning-fast accurate trade execution is another advantage for SureTrader customers.

Contact SureTrader right away to get started investing online with the best in online brokers.

 

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

How to Identify Market Trends and Make the Most from Them

Just What Is Meant by “Identify Market Trends?”

If any given day trader or investor could accurately predict the direction individual stocks or market segments would take over even a short period of time, the potential for gains would be significant indeed. Unfortunately, the natural volatility of markets combined with myriad variables that can influence the prices of stocks or supply and demand for commodities makes such accuracy unlikely, if not totally impossible. This being the natural environment for investors, it becomes imperative to utilize every advantage and tool available to make such predictions reliable and consistent in order to maximize gains and minimize risk.

Identifying trends can reveal the right time to execute buy orders in financial vehicles and just as importantly, this knowledge can trigger the right time to exit an investment or to avoid a purchase that had previously appeared attractive. Trends may be either static, upward moves, or declines. If a day trader is confident that a positive trend is taking place in particular biotech stocks or an individual precious metal such as gold or silver, a buy order can be placed with their online broker and then monitored closely for the anticipated trend to increase the value to a predetermined exit price. This is where the adrenaline begins to flow for traders; while tracking investments and exiting at precisely the right time – or at least while in positive territory.

Conversely, buying an asset then detecting a downward trend signals the trader to reverse direction and exit the investment quickly to minimize losses.

How Do Traders Identify Trends?

There are many tools available to investors and day traders that contribute to success in identifying market trends:

News – often, current and evolving global news events will significantly impact markets. Political unrest in countries that supply essential commodities such as oil or food products like coffee or wheat can drastically impact supply and with demand being relatively equal, prices can skyrocket. Getting into those markets at the right time can produce considerable profits.

Long-term trends are not the primary concern of the typical day trader who focuses on turning investments quickly – usually at least on the same day, and often within minutes or hours in a single trade session. There are a great number of indexes available for specific markets and also indexes that focus on overall performance or market volatility (VIX index). Monitoring indexes related to your chosen strategy can provide initial visibility to trends. There are a number of indicators commonly put to use by traders to identify trend movement, as well.

Charting – one of the simplest and most straight-forward methods for visualizing trends is a simple chart of an individual stock over time. This demonstrates clearly whether the stock is on an upward trend or a decline. Here again, past performance is not a guarantee of future results.

Corrections – Trend lines for any given investment can change on a moment’s notice and may or may not indicate a reversal of the trend. Day traders in particular need to take close notice of such corrections to determine if they believe there is reason to react or hold their position.

Online Brokers Help Traders Identify Market Trends

Online brokers may provide clients with tools that provide insight into market trends:

  • Graphing and charting tools – simplified visualization of trends in markets and individual stocks
  • News feeds – keeping customers up-to-date on evolving events, locally and globally
  • Stock information in the form of stock tickers, watch lists, and alerts

SureTrader furnishes every client with tools that maximize gains and trade efficiency. We provide multiple platforms to suit every need including our free web-based trading platform and our powerful desktop trading platform loaded with sophisticated and advanced features. Mobile platforms support both Android and iOS devices.

SureTrader’s award-winning support includes contact with actual people 24×7 to help clients with questions and to resolve every problem quickly and to the client’s satisfaction. Fast and accurate execution of trade orders enhances service to our clients.

Contact SureTrader right away to get started investing online with the best in online brokers.

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

Category: Trading Tips

Terms & Conditions

Use of this website is subject to your acceptance of the following terms and conditions: Terms & Conditions

Continue

By clicking the Continue button, you agree to the terms and conditions