Using Seasonality To Your Advantage

Hey 5-Star Trader,

Happy New Year! Examining past trades is very important to every trader. It is how we learn from our mistakes. However, moving on from them is very important too! That is why this is the last week I will be reviewing my 2021 trades. Let’s hop right in so we can prepare for the upcoming year!

The last trade that made it into my top three journal entries was my trade in the Nasdaq (QQQ)**.

The seasonality of May is often referred to as weak. For this reason, I was prepared for the market to pull back, but I wanted to verify that was going to happen. Pictured above, is my chart. As you can see, the squeeze was consolidating and volume was going negative. This was my confirmation and I decided to put on a bullish butterfly and in only four days the QQQ pulled back and met my target for a profit. 

**For a full write-up of this trade, click HERE.

Entry: BUY +3 BUTTERFLY QQQ 100 (Weeklys) 7 MAY 21 340/330/320 PUT @1.96 limit order (LMT)

Exit: SELL -3 BUTTERFLY QQQ 100 (Weeklys) 7 MAY 21 340/330/320 PUT @4.21 LMT

For more market commentary just like this, join my Stacked Profits Mastery program. There, I give real-time alerts for my entries and exits, as well as provide current market analysis.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. The content was purely for informational purposes only and not intended to be investing advice.

Image Sourced from Pixabay