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It seems like I just took down my Christmas tree from last year, but the holidays are already upon us once again.
Frank Sinatra said it well in “The Christmas Waltz…”
“It’s that time of year when the world falls in love. Every song you hear seems to say, ‘Buy Google!'”
Okay, okay, I know those aren’t the real words. But with the holidays come some great trading opportunities…
And today, I’m going to show you seven of them!
Each of these stocks has 100% historical accuracy. That means that if history repeats, which it tends to do, these trades will drop profits into your pockets for the holidays.
Here are seven ways to make some cash back from the holiday season…
Seven Stocks with 100% Historical Accuracy During the Holidays
History is our best guide in predicting the future movement of stocks.
Why? Well, history tends to repeat, particularly when it produces the same result consistently over longer periods. That’s why it’s such a great market predictor.
The holiday season is traditionally good for retail and transportation sectors. But there’s more than meets the eye…
If you know where to look, the most consistent performers during the holidays are not always who you’d expect.
The following stocks all have 100% bullish accuracy during the holiday season…
- Alphabet Inc. (NASDAQ: GOOGL)
Also known as “Google,” Alphabet is a world-leading multinational technology company specializing in internet-related services and products. You’ve heard of GOOGL, of course. What you may not know is that GOOGL has been consistently bullish the 14 trading days before Christmas through the day after Christmas over the past 10 years.
Average return-on-investment (ROI): 3.19%
Entry Date: 12/5/19
Exit Date: 12/26/19
- Terex Corporation (NYSE: TEX)
TEX is an American worldwide manufacturer of lifting and material handling solutions for a variety of industries, including construction, infrastructure, quarrying, recycling, energy, mining, shipping, transportation, refining, and utilities. It has consistently risen an average of 4.85% over the past 10 years from four days before to five days after Christmas.
Average ROI: 4.85%
Entry Date: 12/19/19
Exit Date: 1/2/20
- Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY)
PLAY is an American restaurant and entertainment business headquartered in Dallas, Texas. Each Dave & Buster’s has a full-service restaurant and a video arcade. As of November 2019, the company has 135 locations in the U.S. and Canada. Over the past five years it has consistently risen an average of 6.81% from seven days before to one day after Christmas.
Average ROI: 6.81%
Entry Date: 12/16/19
Exit Date: 12/26/19
- Boeing Co. (NYSE: BA)
Based in Seattle, Washington, BA is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. Over the past 10 years it has consistently risen an average of 1.94% from four days before to five days after Christmas.
Average ROI: 1.94%
Entry Date: 12/19/19
Exit Date: 1/2/20
- GrubHub Inc. (NASDAQ: GRUB)
GRUB is the nation’s leading online and mobile food ordering and delivery marketplace dedicated to connecting hungry diners with local takeout restaurants. The company’s online and mobile ordering platforms allow diners to order from more than 140,000 takeout restaurants in over 2,700 U.S. cities and London. Over the past five years, it has consistently risen an average of 3.79% from 14 days before to 2 days after Christmas.
Average ROI: 3.79%
Entry Date: 12/5/19
Exit Date: 12/27/19
Bearish Holiday Stocks
Now, the holiday season doesn’t just produce consistently bullish stocks. The following two stocks have consistently dropped during the holiday season…
- Facebook Inc. (NYSE: FB)
You may already know all about FB, a global social media and social networking giant based in Menlo Park, California. But over the past five years, the stock has consistently dropped an average of 1.95% from three days before to four days after Christmas.
Average ROI: 1.95%
Entry Date: 12/20/19
Exit Date: 12/27/19
- Alibaba Holding Group Ltd. (NYSE: BABA)
Chinese juggernaut BABA is the world’s biggest online commerce company. Its three main sites, Taobao, Tmall and Alibaba.com, have hundreds of millions of users and host millions of merchants and businesses. BABA handles more business than any other e-commerce company. Yet over the past five years, it has consistently dropped an average of 7.31% from 18 days before to one day after Christmas.
Average ROI: 7.31%
Entry Date: 11/29/19
Exit Date: 12/27/19
How to Play These Stocks for 10-Fold Increased Returns
Now that you know the best seven stocks to play, just one question remains…
How do you play them?
Of course, you can buy or short stock for each of the setups above. Historically speaking, with stocks your returns will be anywhere between 1.94% and 7.31%.
But buying options instead will increase your returns approximately 10-fold.
Here’s what you do:
Bullish: Buy 60-day Out-of-the-Money (OTM) Calls
(e.g. with XYZ trading at $50, buy January $55 Calls)
Bearish: Buy 60-day Out-of-the-Money (OTM) Puts
(e.g. with XYZ trading at $50, buy January $45 Puts)
I hope you have a great holiday season! With these seven stocks, I’m sure it will be a prosperous one.
Happy trading,
Tom Gentile
America’s #1 Pattern Trader
