Editor's note: Setting New Year's resolutions is a type of cyclical activity. While you're likely to follow them closely at first, chances are, they'll be long forgotten by the end of the year. And according to Keith Kaplan – CEO of our corporate affiliate TradeSmith – the markets are cyclical, too... as consumers make new choices all year long.

In today's Weekend Edition, we're taking a break from our usual fare to share one of Keith's essays. In it, Keith shares how to spot these trends and explains why understanding them can give investors an edge...

Every January, millions of Americans resolve to make dramatic changes to their lives.

Many folks pledge to live healthier, manage their finances better, and pursue personal growth.

Unsurprisingly, physical fitness is one of the most popular New Year's resolutions each year. In fact, a 2024 Forbes Health survey reported that 48% of goal-setters chose improving their fitness as their No. 1 goal in the new year.

But Forbes' statistics show that a full 53% of New Year's resolutions are long forgotten by the end of March. And a mere 10% last until October.

The same kind of seasonality plays out in the stock market, too. And not just at the beginning of the year...

We know because we ran 50,000 tests daily on 5,000 stocks over the last 33 years of historical data. What we discovered is a secret, hedge-fund-level seasonality to stocks – in very specific windows of time.

Just as people cycle through enthusiasm, apathy, and the latest clean-eating meal-kit service... so too do investors respond to predictable patterns of excitement and fatigue within sectors. That's particularly true of those tied to consumer behavior. Think about travel and hospitality stocks during the summer season, or housing in the spring – real estate's busiest time of the year.

Understanding these trends can give investors a significant edge.

In fact, new TradeSmith research shows that we can find seasonal trends with as much as 100% historical accuracy for a particular stock. This means that in 2025, along with perhaps improving your physical fitness, you can also buff up your portfolio "fitness."

Let me show you how...

Formerly known as WeightWatchers, WW International (WW) has been the reigning champion of New Year's resolutions for 61 years.

Unlike the fad diets that came and went during that time, WW turned weight-loss programs into a subscription model where people pay a monthly fee to access their plan, as well as in-person meetings, and track their efforts.

When these memberships are "sticky," it creates a recurring revenue stream. This has become a key feature of many modern tech-driven businesses.

It has also helped that WW has integrated the Ozempic/Wegovy craze into its membership offerings since late 2023. In fact, WW even started selling its own brand of these semaglutide drugs in October – sending the stock price soaring for the first time in months.

Time will tell if this will save the old-school diet company from going extinct.

But, in the meantime, our TradeSmith Seasonality indicator tells an interesting story about when exactly the best time is to trade WW stock.

While the new year may bring a brief pop in the stock price... WW has actually tended to go through severe bearish periods around January 6 through March 6.

However, WW has then rallied sharply 80% of the time between April 12 and May 27...

As the weather gets warmer, WW customers must be looking ahead to their beach plans. The stock has returned 8.5% on average in that spring seasonal window, making April 12 through May 27 the most reliably bullish time to trade WW.

Another example we see through our Seasonality indicator is Planet Fitness (PLNT)...

This gym is more than just a place to work out: It's a business model built on simplicity, accessibility, and a little human psychology.

While other gyms chase fitness enthusiasts and hardcore lifters, Planet Fitness targets everyday people – those who want to "get healthier" without feeling judged or overwhelmed. This approach has helped the company carve out a niche in a crowded industry.

At the heart of Planet Fitness' success is its "low-cost, high-volume" strategy. Memberships are cheap – usually around $15 to $25 per month – making it easy for people to sign up.

But here's the kicker: Most members don't show up regularly. And that's not a problem for Planet Fitness. In fact, it's the plan. By charging a small, low-commitment fee, members are less likely to cancel, even if they only visit the gym a few times a year. This approach creates a steady stream of predictable, recurring revenue – the kind that Wall Street loves. (But even this stock gets a special seasonal boost, as we'll see.)

Planet Fitness saw a massive drawdown at the height of the COVID-19 meltdown. But it has gone on to set new all-time highs over the past year, topping out at $102.01 in December.

As our Seasonality chart shows below, that actually aligns very closely with what we generally expect for Planet Fitness based on nine years of the stock's history...

From November 3 to November 18, our indicator shows that Planet Fitness has a 100% history of rising. And on average, that gain is 11.26% each year, all in the span of 15 calendar days.

But then, after a short bullish period at the close of the year – perhaps driven by those healthy New Year's resolutions – Planet Fitness goes through a quiet period where our indicators don't see a bullish or bearish seasonality pattern again until early April. So you can comfortably steer clear until then.

Much like resolutions, success in the market requires commitment and discipline. But unlike the fleeting willpower of a New Year's resolution, stock market seasonality is backed by hard data. Patterns like the ones we saw here today with Planet Fitness and WW don't just "seem" to exist... They're proven by years of historical performance.

So as you head into the new year, don't just resolve to improve your health – resolve to improve your wealth. The market's seasonal clock is always ticking. And with the right tools and knowledge, you'll be ready to capitalize on every tick.

All the best,

Keith Kaplan

Editor's note: The TradeSmith team has developed a breakthrough way to pinpoint "green zones." These are windows of time when certain stocks have a high chance of soaring – year after year. And it could potentially double your money by predicting the biggest jumps in 5,000 stocks, down to the day... with 83% back-tested accuracy. Sign up here to learn more and try this system free before January 8.