The stock market is likely to rally into yearend. As market watchers know, most S&P profits accrue in the fourth quarter of any year. Needless to say, many stocks rally at this time of the year, but some are seasonally stronger than the market.
Here are a pair of stocks that traditionally exceed the averages at this time of the year. In addition, these equities are supported by positive technical readings.
Zebra Technologies has risen 91% of the time from October 9th to November 30th as noted by the green line in Chart 1. Chart 2 shows a series of higher momentum lows. Relative strength turned up in Q4 of 2023. The monthly strip tells us that this is one of the few technology stocks that is not overbought. There are higher lows in momentum and an upturn in relative strength. The stock is likely to reach $450 as 2024 ends.
Chart 1-Zebra Seasonal Cycle
Chart 2-Zebra Daily, Weekly, Monthly
RCL has appreciated 83% of the time from October 3rd though December 31st as graphed in Chart 3. The stock is overbought in terms of price, but not in terms of relative price. Note that relative strength keeps hitting new highs. The stock is likely to reach $210 by yearend.
Chart 3-Royal Caribbean Seasonal Cycle
Chart 4-Royal Caribbean Daily, Weekly, Monthly