RJ Hamster
This “X-Ray View” Shows When Stocks Tend to Rise…
This “X-Ray View” Shows When Stocks Tend to Rise and Fall
BY KEITH KAPLAN
CEO, TRADESMITH
How often do you see a photo that makes your mouth fall open, your pulse race…
And makes you question everything you thought you knew?
That’s how Nobel Prize-winning biologist James Watson described seeing “Photograph 51” for the first time in January 1953.
It was a strange image taken by British chemist Rosalind Franklin with a technique called “X-ray crystallography.”
Her X-ray captured a crucial pattern in our DNA that no one had detected before. The DNA strands twisted and crossed into what we now know as “the double helix”:
Photo 51 showed for the first time that the DNA forms a double helix.
Source: King’s College London Archives
These scientists weren’t the ones to discover DNA. That was back in 1869.
But 80 years went by before Franklin’s X-ray crystallography began to reveal a hidden structure that had been there all along.
Turns out, patterns and cycles are pretty much everywhere in nature.
That’s also true of the stock market. You’ve just got to be able to spot them.
And much like the DNA double helix – you can’t really do it with the naked eye…
You need an X-ray view.
That’s what our TradeSmith Seasonality software is designed to do. By analyzing more than 2.2 quintillion data points… across decades of market history… we have found historically reliable windows when specific stocks tend to rise and fall.
The patterns I’m talking about have even held up through bull and bear markets, manias and panics, wars, pandemics, and more.
And based on these signals, we created rapid-fire trading to pinpoint bullish seasonality windows on 5,000 stocks – to the day. In our backtests, the system’s trades have won with 83% accuracy.
The long-term returns were also more than twice that of the broad market:
I walked through how this “X-ray view” works during my Prediction 2026 event on Tuesday.
I also pointed out some fast-approaching seasonal patterns that every investor should be aware of… some that will hit as soon as Jan. 28. So if you missed it, make sure to catch the replay here.
Then read on for three opportunities TradeSmith Seasonality reveals now.
Buy the Hidden Green Zones in Stocks
When it comes to price cycles in stocks, it’s not really something you’d try to find manually. That’d be an enormous undertaking.
You’d have to pull up a one-year chart like this…
Line up one-year charts, one after the other, going back a decade or more…
And keep track of how that index behaved across thousands of trading windows.
Or – you could just type “SPX” (S&P 500) into the TradeSmith Seasonality tool. In a split second, it averages as many years as you want… then, it gives you one, simple seasonality trend line.
Best of all, it highlights “green zones,” when the market’s gone up 80% of the time or more. Plus “red zones,” when it’s fallen 80%+ of the time. You can do this for pretty much any stock you want and map out great trades – in advance.
In the past 15 years, the S&P 500 has had green zones in late January, in April, and in October.
But the absolute best one starts June 29:
Between June 29 and July 21, the S&P has gone up in all 15 of the past 15 years, with an average return of 3.2%.
And we can find larger short-term returns by training this tool on individual stocks.
Some Quick, Bullish Trades for Your Radar
Tesla (TSLA), for one, has four of these “green zones” throughout the year. The next one is March 18 through April 6. And in that window, the stock has returned 7.8%, on average, over the last 15 years.
Then, TSLA has an especially strong window starting May 20. Buying that day returned an average 12.7% in just one month – through June 22:
Those are the optimal patterns to follow our seasonality strategy, trading individual stocks at their absolute best times of year. And our seasonality data on the stock market tells a dramatic story now for 2026.
It paints a compelling picture of other companies, too.
In honor of Rosalind Franklin, the pioneer who took that crucial photograph of our DNA…
Let’s look at a biotech company.
Here’s the seasonality “X-ray” of Eli Lilly (LLY).
The optimal time to own LLY is also mid-year, although it also offers a nice, quick bullish trade from Feb. 11 to March 5:
As you can see, that mid-year green zone begins on June 4 and ends on July 17. It has an 86.7% historical accuracy rate. And over that time, it returned an average gain of 5.6%.
And I’m sure you’ll also notice all the other times of year that don’t get these green or red windows.
That’s because we aren’t willing to dive in at any random season.
We only want to trade the deepest, most predictable cycles. So reliable, they’re like the eternal rhythms of nature and biology.
Using TradeSmith’s Seasonality tool, we’ve put this approach to the test across thousands of stocks, major indexes, and even commodities and currencies.
Over an 18-year backtest, following seasonal patterns delivered 857% in total returns — more than twice what the S&P 500 returned over the same stretch.
The very worst year in our test was 2007 – and even then, our strategy still turned a profit. And it beat the S&P 500 by over two to one that year.
Mark Your Calendar for These Key Dates
That’s why, if you missed it, I hope you’ll check out the replay of our Prediction 2026 event.
I’ll walk you through the seasonal patterns coming up that you need to watch for…why they keep working even when markets get chaotic…and how to put them to work in your own portfolio.
As you’ll see, getting your timing right could matter more to your wealth than any stock pick you make this year.
And the first date to watch is Jan. 28. If this seasonal pattern plays out as expected, it could unlock one of the best trading setups we’ve seen in decades.
So check out the replay while there’s still time.
All the best,
Keith Kaplan
CEO, TradeSmith
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