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Admin123 : Sid Bhattacharjee
Date : 2021-08-02

US Stocks of interest in Week 32

This is week 32 as per ISO numbering convention of the weeks of a year. This week starts with several stocks in view, the most interesting among those is SouthWest Airlines Company (NYSE: LUV), also called just SouthWest Airlines.

LUV is one of the S&P500 stocks which is very actively traded and has a full range of weekly and monthly options with fairly large open interests. LUV is one of the very few no-frill airlines in the world who run a very lean operation and was profitable even when the entire airline industry was going through the toughest times after 9/11.

The management of the company is very well regarded and there is a very popular book on how the airlines lead with credibility and care, invest in frontline leaders, hire and train for relational competence and use conflicts to build relationships and could be a model for other airlines or any other organisation.

As of Friday close, the stock was trading at 50.52, it has 12 months high of 64.75 and low of 30.30. Out of 23 analysts, 16 rate this stock as buy to strongly buy with target High price of $85.00, median price of $66.00, low price of $57.00, the average being $66.84.

The technical chart of the stock is shown below. The price is trading near a strong support line and also the candlestick formed at the end of the short downtrend is an inverted hammer.

All these are indications of potential bullish move of the stock in short term as we see confluence of several technical indicators as well as other non-technical indicators.

But why is this stock of special interest to us and mentioned here, please read on. The stock demonstrated strong seasonal move in week 32 of the year, here are some of the details of its seasonal behaviour:

In 8 out of last 10 years in week 32, the stock was bullish with average move up of 11.63% and average move down of only 4.91% for an average holding time of 44 days;
If 100 stocks of LUV were bought in the beginning of week 32 every year for last 10 years, then a trader would have had a Gross Profit of $3852, Gross Loss of $79, making a Total Net Profit of $3773;
In those 10 years, the Largest Win was $1056, Largest Loss is $61, the Average profit/trade being $377

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Disclaimer:

Sapphire Private Assets (ABN: 34 613 892 023, trading as Sapphire Capitals) is not a broker or a financial adviser but an education and research organisation; we provide training and tools for traders and DIY fund managers for trading in global financial markets. The contents of the blog have been produced by using technical analysis and trading applications developed by Sapphire Capitals for the Stock and ETF traded worldwide. The contents of this blog are intended for education and research purposes only and is not a recommendation or solicitation to invest in any Stock or ETF.

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