Seasoned Stocks: Trade of the Week

Never Be On The Wrong Side Of Another Historically Repeating Market Cycle Or Trend…

Dear Trader,

Yep...it's that time again! Mark your calendar for an upcoming seasonal opportunity that's around the bend. Here we go with another Seasoned Stocks: Trade of the Week--- this week we will dive into Activision Blizzard (ticker symbol: ATVI). Here's a fun fact, the Saudi's PIF (Public Investment Fund) recently raised its share stake of 15 million shares, to 33.4 million shares in Activision Blizzard. See screenshot below. Also, if we look at the Starmine Combined Alpha Model (CAM) and the Combined Credit Risk (CCR)...which I circled in 'green' , at the top/middle-right of the screenshot below: they read CAM 75 & CCR 96. In simple layman terms, that means the quant PhD's like it.

Ok...so here's my logic. In the past 5 years, from May 23 to July 13 Activision has gone up 100% of the time over that 2 month period. It's averaged +9.2%, that's a very good move, especially if you are an options trader. Now, 5 years isn't a lot of data...however if you go out and look at 10,15, 20, 25 + years of data, Activision Blizzard is still very attractive seasonally, but I'm not going to lay all of that research out here today. But I will say over all those time periods it averaged about 75% winners over those time periods, and the median move, ironically, was still about +9% when you crunch all the stats. Point being, it's a good statistical edge. See below the 5 year stats in the Seasoned Stocks software, and our Technical Analysis Widget says the sentiment of indicators is currently leaning Buy-side bias:

Ok, now back to looking at the past 5 years...cycles and data can change, maybe there's something that changed in recent years with the ATVI. Who knows? Take a look at this...the Max % Open Gain's (+10.67% mean) are very attractive, compared to the Max% Open Loss (-3.93% mean). That's attractive, from a risk/reward standpoint.

Furthermore, if we look at the Seasoned Stocks software, we notice at a glance that the peers within the industry seem to have a bullish bias uptick as well during the aforementioned start date, which might tip us off that it's a viable seasonal play:

Ehh...what the heck, and the Cherry On Top...the Analysts seem to love it! LOL.

Personally, I like ATVI. There's sooo many ways to play this trade. That said, from a simple chart perspective, it's trading within the top quarter of the 12 month range, that generally means the broad market likes it. Possibly it can make a move up in the next couple of months toward its Feb 16th $104.51 high from earlier this year. The seasonals say, over the upcoming time period mentioned earlier, that it's made the mean average move into the 9% range. There's no guarantees of anything, but on its face, the potential is there.

So there you have it. Hopefully this information shared today was helpful, and provided you with an added edge in your trading. Remember, do your homework, and fully understand the risk before trading anything. To learn more about more seasonal information on Activision Blizzard and other seasonal opportunities, please click on the link below to access the Seasoned Stocks software: https://seasonedstocks.com Trade Smart, Chad Shirley P.S. Don't forget to set up email and text alerts for your upcoming Seasoned Stocks trade alerts:

Glossing over Risk Disclaimers is a dangerous habit many traders have developed. With all trading strategies, there is "profit potential" and there is "risk potential". Risk potential means you could experience losses. Profit potential means you could experience profits. Glossing over a risk disclaimer may lead to deciding to stop trading strategies long before they should stop trading them because they did not take the risk disclaimer seriously. Understanding risk is more important to the overall success of trading than you might think. Every strategy and trade opportunity associated with PDS Trader carries risk. In all cases, you decide whether the "profit potential" is worth the "risk potential". *Disclaimer – Results may vary from person to person and results are not guaranteed. (For more information, read our Privacy Policy https://paydaystocks.com/privacy-policy) Unsubscribe Quantum Trading Technologies PO Box 1510 Clearwater, Florida 33757 United States