Seasonal Analysis = 25% gain in 31 Days

The February 19th, 2014 Seasonal Forecaster newsletter introduced readers to a stock not often mentioned on the financial press. “Ann Inc, a women's apparel chain, has good fundamentals (an EPS growth rate of 43% and a Return On Equity of 26%). My interest in this stock is it has a very strong seasonal right now. ANN is coming off a recent low on good volume.”

Readers were able to easily get in at 33.67 at the open on the 19th.

The March 5th, 2014 newsletter had an update:

“ANN, a focus of the 2/19/2014 newsletter, gave us a quick gain. A little profit taking has set in, but I like how it cleanly bounced off the 50-day Moving Average. If the markets, and ANN, open positively today, this would be a good time to enter new positions or add to an existing position. But remember, ANN is due to announce earnings soon (March 14th, before the open). Only small new or add-to positions are in order until after earnings. More conservative traders may want to wait until after earnings.”

Readers were able to enter a new position or add to the previous position at 33.67 at the open on the 5th.

Ann, Inc. announced earnings on Friday morning, March 14th, resulting in a nice 7.6% gain for the day. But ANN was not done.

On Friday, encouraging news came out that led to a 13% leap in the stock. In a Motley Fool article, Jeremy Bowman detailed the reason:

“Elsewhere in retail, ANN  (NYSE:ANN ) was getting a boost, climbing 13% after private equity firm Golden Gate Captial [sp] disclosed a 9.5% stake in the Ann Taylor parent. Golden Gate is known for shaking up retailers, but said it had no intentions of the sort, showering management and the overall business with praise in a letter, and saying it believed shares were “significantly undervalued.” ANN responded to the investment by saying it's had two straight years of record earnings and four straight of improving comparable sales, and that it welcomed new investors. Based on today's rally, investors seemed to agree that shares are undervalued. The retailer beat fourth-quarter earnings estimates easily last week, and is now up more than 30% since its pre-earnings announcement on February 6.”

While this news announcement could not have been foreseen, it was the strong seasonal track record that brought our attention to a company that quietly records good gains this time of year. Only this year it wasn't quiet.

Our initial 2/9/14 trade is up 24.9% and the add-to/new position of March 5th is up 17.4%. We'll continue to hold on and protect profits.

High probability setups on stocks with strong seasonal track records, and the best ways to trade them, are covered in every issue of Seasonal Forecaster.

Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day.  To find out more, type in www.markettamer.com/seasonal

By Gregg Harris, MarketTamer Chief Technical Strategist

Copyright (C) 2014 Stock & Options Training LLC

Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.

Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.

Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.

As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.

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