15 Strong Seasonality Stock Trades For May

These stocks have a long history of performing well in May, rising in the month at least 74% of the time and typically jumping by at least a few percent on average. Stocks mentioned: $S $BK $TYCO $JCI $SLM $RRD $CAG $CSC $DDS $VSH $UNH $FLO $STJ $KO $MDT

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 May, historically. That doesn’t mean they will rally this May, 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 May stock performers, most stocks tend to be pretty flat in May. Over the last 20 years the S&P 500 index has moved up in May 58% of the time (number above columns), but the average return for all those months is 0% (number at bottom of columns). Chart courtesy of StockCharts.com.

(Click on image to enlarge)

S&P 500 May Seasonality

Strong Seasonality Stock for May

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 recommend 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.

78% Rally Rate

All stocks do at least 500K in average daily volume.

Sprint Corporation (S) – Which was recently featured in Keep An Eye On These Stocks

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Disclosure: The author doesn’t have positions in these stocks currently, but may initiate positions if the stock prices slide a bit lower.

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