Why You Should Remember to Buy in November VIEW IN BROWSER By LUCAS DOWNEY, EDITOR, TRADESMITH’S ALPHA SIGNALS November is a special time of year. Families gather around the table giving thanks. They plan holidays and even look forward to what’s ahead. It’s the season of joy – and this cheery outlook spreads into the stock market. In fact, it’s not just the 11th month that’s special…November kicks off a supercycle for stocks lasting many months, as we’ll see today. Stocks certainly closed out October on a high note, gaining 2.3% for the month. Now we’ll turn to one of my favorite studies in the stock market… and I’ll offer up an all-star AI stock to consider. Now, let’s be honest – there’s a lot of fluff in the A.I. space. But with a track record of gains 86.7% of the time, starting in November – this one’s a no-brainer to play this unique seasonal setup. November Is the Best Month for Stocks At TradeSmith, you know we put a lot of emphasis on seasonal tendencies… because they work more often than not. And one of the strongest market windows is swinging open right now. Back to 1990, November has been the best-performing month for the S&P 500 with a 2.2% average gain. Note that December is also a powerful performer with an average 1.3% gain: 
So get excited about the stock market right now! The portfolio winds are blowing North. And you’ll want to be thinking out further than yearend for gains. Back in November 2023, I told you to remember to buy in November. That’s because, as it turns out, November to April has offered more than double the returns you saw in the other six months of the year. No wonder it became a Wall Street adage to sell in May and go away. There’s a lot of truth to that statement because the six-month period of May to October tends to underperform wildly. Check this out. Back to 1995, the S&P 500 averages a gain of 6.7% during November to April versus just 3.1% during May to October. And this yawning gap can be seen in stocks of all sizes. Below, note that small-caps, mid-caps and the NASDAQ 100 large caps also tend to massively outperform during this November window: 
I’ll say it again: Please remember to buy in November! But when you do, make sure to focus only on the healthiest stocks with monster fundamental tailwinds at their backs. Here’s a great example. | Recommended Link | | | | Tesla could be about to change forever. On November 6, insiders are warning of a “critical inflection point”, which could have a dramatic impact on the stock market. Do not buy OR sell Tesla stock until you have all the facts. Full story here. |  | | Taiwan Semiconductor (TSM) is an All-star Stock for the November Buy Window You see plenty of companies riding the AI wave higher right now… but only a true handful are worth your time…and money. Taiwan Semiconductor (TSM) might be the most important semiconductor play out there. This leading computer-chip foundry has contracts with many of the largest firms on the planet, including Apple (AAPL), NVIDIA (NVDA), Broadcom (AVGO), and Advanced Micro Devices (AMD) to name a few. TSM has the high-performance chips that the world requires right now. This is one of the main reasons the stock has crushed the S&P 500 over the past six months: 
One look under the hood reveals why this $1.2T behemoth is leading the charge. In 2024, sales soared to $90.1B from $69.3B a year prior. In 2025, analysts expect a repeat performance where revenues could jump to $123B. Look out another year and sales should eclipse $150B in sales. That’s staggering growth for a company of this size. Even more impressive is the bottom line (profit) growth. In 2024, net income clocked in at $35.3B. That number is expected to soar to $53.9B in 2025 and then reach nearly $65B in 2026. This is a level of high quality that most companies would kill for. And why I like it for November, specifically, is its superior seasonality. Using TradeSmith’s Seasonality tool, we can finally quantify how much a stock could go up in its best seasons… and precisely when to buy – then sell. And what we see with TSM is that if you bought Nov. 3 and sold Feb. 15, the stock’s average return is 16.6%: 
Then when you scroll down to each individual return, the 15-year lookback period had some kind of gain 86.7% of the time. That’s 13 up periods and just two tiny down periods: 
For the final test, let’s push TSM through Jason Bodner’s Quantum Score, which instantly calculates an overall technical and fundamental rating. As you can see, it doesn’t get much better than this. The fundamental score ranks in at 90 while the technical grade comes in at 100. An overall Quantum Score of 95.9 is one of the highest grades you’ll find for an AI juggernaut. 
As the market notches new highs day after day, you can either watch from the sidelines…or own the absolute best stocks for this powerfully strong time of year, November-April. I say focus on all-star companies with huge demand like Taiwan Semiconductor. This is where TradeSmith software shines. Don’t waste the opportunity buying low-quality stocks… that’s a losing recipe. And it’s why being armed with hard data is mission critical in this day and age. So as October’s momentum begins to spill over into a new month… Keep it simple and never forget these six words. Please remember to buy in November! Regards, 
Lucas Downey
Editor, TradeSmith’s Alpha Signals Note from Ashley Cassell, Managing Editor, TradeSmith Daily: Today is the last day to get your free briefing on another ingenious way to time your trades – one we’ve deemed our Ultimate Stock Strategy. It takes high-quality stocks like TSM… then points you to particular ones that are generating the most online buzz right now. When a publicly traded company becomes the next big thing no one can shut up about on social media, you can imagine what that does for its stock price. In fact, don’t imagine. Watch this to see what it’s already done for Andy and Landon Swan’s MegaTrends stocks… and the unique few that measure up for the new Ultimate Stock Strategy now. | 
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