Buy Starbucks, Sell Short eBay And Accenture

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Let us take a market reading. Both the NVIDIA and Apple monthly price cycles decline through the month of September. How can the NASDAQ rise with these two heavyweights in decline? In addition, the monthly price cycle for the NASDAQ Composite is in descent. And, as we know, September has been the weakest month in any year, especially for technology. This points to lower tech prices, but there are a couple of saving graces that indicate a mild correction.

First, this is September in a year ending in a ‘5.’ These years in the decennial pattern have tended to be the strongest. The depressing effect of the seasonality is somewhat offset by the ‘5’ effect. Here are the bullish percentages for 3 months for the DJIA since 1885:

And, the first three trading days have been a harbinger for the remainder of the month. If these days bring rising prices, the September weakness tends to be mitigated. This opening trio in September 2025 closed on the upside…more evidence for a soft September landing.

Weakness is likely to be centered in the technology sector. Here is a long recommendation that are likely to swim upstream plus some short sales candidates.

Buy Starbucks. Stock evaluation through cycles follows several steps. First, we look at the seasonal tendency. Then all other cycles are analyzed. This is the beginning of a favorable seasonal period. In the next 3 months, here is the stock performance in terms of percentage of times in which the stock rose:

September: 62% up

October: 70% up

November: 76% up.

SBUX has risen from October 3^th to December 7^th 88% of the time over the last 33 years. The weekly cycle has already bottomed as we see below, as has the monthly cycle. The stock is likely to rise to $91 or higher by yearend.

Sell short eBay. This situation is the reverse of the Starbucks picture. On a monthly basis, this stock has been tracking its cycle. There have been 5 signals in the last year and all the buys and the sells have been profitable. September has been the second weakest month of the year over the last 27 years. The stock is likely to trade in the $85 area by late October.

The Accenture cycles also point to lower quotes. There have been seven cycle signals in the last year. All have been profitable. Relative strength has been falling all year, hitting a new low in mid-August. In fact, this measure topped in 2022. Momentum is oversold, but there are no signs of accumulation. The cycle falls into month’s end, rallies to mid-October, and then falls into mid-October. The share price is likely to fall to $210 before a sustained uptrend can begin.