Listen to the audio version of this article (generated by artificial intelligence).
Tom Young is here with your Sunday digest.
The summer months are usually boring for active stock traders. Trading volumes dry up, options become more expensive, and everyone awaits the often disappointing second-quarter earnings season. The second quarter lacks a major shopping season, which may explain why August and September (when financials are announced) are historically weak months for many U.S. stocks — especially consumer-facing stocks.
However, there is always a bull market somewhere. This is because not every country follows the same calendar that we Americans do.
Much of East Asia treats Lunar New Year like Christmas. People are flocking to luxury vacations and gifts. For them, February is the month in which they spend big. The Middle East celebrates Ramadan and Eid al-Fitr on a variable date.
That’s why I think it’s very helpful for active traders to listen to the upcoming presentation TradeSmith CEO Keith Kaplanon Thursday, July 16 at 10 a.m. ET.
In this free Breakthrough 2026 In this event, Keith explains how he and his team have developed a trading system designed to accurately identify these seasonal signals and help investors identify exactly the right time to enter a stock. It’s not just about identification What The right stocks to buy are… It’s also about when To enter. Reserve your spot for this broadcast here.
The system works. Last year, I suggested four stocks using this approach. Shares of the four companies rose 10% on average in the following month, a nice bonus for stocks I was already anticipating. If you want to try the tool yourself, You can do this by clicking here.
Meanwhile, Keith’s system has identified two companies that I expect will do very well in the coming months. I would like to share them with you today.
Stock to Buy #1: Open Sesame
It’s been a tough stretch to Alibaba Group Holding Limited (Daddy), The largest e-commerce company in China by revenue. After peaking at nearly $200 last year, shares of the retail giant have collapsed… hitting a low of $92 last week before seeing a slight rebound last week.
Keith’s system is suggested now This is the time to come back. Over the past 12 years, Alibaba shares have performed best in the first three weeks of July — an unusual period for Western consumer stocks to do well.
There’s a good chance this boost will come from China 618 Shopping Festivala “Digital Black Friday” that lasts for several weeks and extends from mid-May until mid-June. This oddly timed sale comes just three months after the Lunar New Year and adds rocket fuel to second-quarter earnings. (In the United States, it may be more like a second birthday celebration in March.)
The 618 Festival is overshadowed by the famous November Singles’ Day Sale, where people buy gifts for themselves. I think this often makes investors underestimate the less popular peer of the day.
However, 618 has become a bonus for online sellers. Analysts estimate that last year’s festival generated $125 billion in sales. That’s roughly what the entire U.S. holiday online shopping season brought, once you adjust for the size difference between the two countries. This year’s “slow” 618 Festival is still expected to see a 4% increase in spending.
Alibaba will make big gains. The company is responsible for nearly 50% of Chinese e-commerce sales by value, and its marketplaces on Taobao and Tmall are a lucrative cash cow.
Additionally, I look up to Alibaba as it rapidly expands into AI cloud computing using Alphabet Inc.’s playbook. (Google). Alibaba is now designing its own chips, building its own data centers, and developing a whole host of advanced AI models. Its Qwen 3.7 Max AI model is the best of any Chinese company, as ranked by synthetic analysis, and is only several months behind the leading OpenAI and Anthropic models.
In other words, Alibaba has become a diversified technology giant.
This is important because Alibaba’s e-commerce business now generates a lot of money to reinvest in the business. All of this money (more than $20 billion annually) can now be used to create high-growth, vertically integrated AI businesses.
This vertical integration is important to Alibaba’s success. Custom-designed chips are more power efficient and operate faster, because they can be interconnected to power specific models (for example, Alibaba models). This means that Alibaba can often undercut competitors simply by running things more efficiently.
Think of it like a chef who has been trained to prepare specific dishes. A dinner cook may be able to prepare dozens of dishes and switch between cooking, baking, and making sauce. These chefs are similar to public data centers like CoreWeave Inc. (CRV(or Nebius NV group)NBIS) which takes any client willing to spend money for an AI account.
But if you want a perfect plate of sushi or a crispy croissant, it’s usually better to go to a restaurant that specializes in those dishes, rather than a Las Vegas steakhouse that does everything one way or another. This is the strategy followed by both Google and Alibaba, and I expect both of them to succeed.
Best of all, expectations are low for Alibaba. The company is now trading at just 17 times forward earnings after the recent selloff — a fraction of what e-commerce and AI companies typically trade for. If Keith’s system is correct, now is a good time to return to this promising stock.
Inventory to Buy #2: Impress Shoppers
South Korean consumers also have their oddities. They do nearly half of all the shopping Online nowThey use their phones to buy everything from fresh groceries to major appliances.
This means that South Korean e-commerce platforms have huge appeal through their digital sales events. The market leader in this is Coupang Company (CPNG).
Coupang is the largest retailer in South Korea in terms of sales, beating every other e-commerce company and Brick and mortar company. The company has a national logistics network that provides same-day or next-day delivery to more than 90% of the country and aims to cover 99% over the next several years. Its rocket delivery system is so fast that most people who order fresh food in the evening can expect to receive it before they leave for work the next morning.
Keith’s system suggests that August would be the best time to enter this stock. Over the past five years, stocks have risen 9% on average from the beginning of August through mid-September.
One possible reason is Coupang Members Day wowA one-week sale occurs in July. The event is so large that I think it adds 10%-15% of revenue to a typical month of sales.
The other reason is that South Korea has a second Lunar New Year holiday in September called Chuseok. This is one of the most important festivals of the year, and the sales boost can be compared to the 618 event in China and the holiday online shopping season in America once you adjust for South Korea’s smaller size. Coupang’s third-quarter revenues are always greater than the first two quarters, and even surpassed last year’s fourth-quarter sales.
The company is also quickly emerging from a cybersecurity scandal last year that shook investor confidence. In mid-June, South Korea finalized a $409 million fine against Coupang over a 2025 data breach that exposed user information. This fine was much lower than investors expected and caused the stock to rise. For those seeking to organize an investment abroad, the Keith System finds Coupang in August to be an ideal choice.
Find the right time to buy
Of course, both Coupang and Alibaba come with significant regulatory risks. Both operate in countries with heavy-handed governments, and both have fallen on the wrong side of those hands at some point.
- Alibaba founder Jack Ma disappeared from the public eye in late 2020 after criticizing Beijing’s financial regulators and state-owned banks. He no longer runs the company.
- The 2025 Coupang data breach led to the government assembling a massive interagency task force that was later recalled “disproportionate” and “discriminatory” By a US-led congressional committee. (Coupang shares are traded on the New York Stock Exchange and therefore have some U.S. protections.)
However, this left both companies with incredible discounts. Cheap prices for high-growth companies often translate into gains of more than 10% when the recovery comes.
Now, the timing of these recoveries was a guessing game. Many people turn to “smart money” indicators, technical analysis, or black box algorithms to know when to enter. With Keith Kaplan’s system, this guesswork is replaced by careful analysis of data.
I highly recommend you follow through. The system has already helped me find many excellent entry points, and I believe it can also help you find the best time to buy the stocks you are eyeing.
Until next week,
Thomas Young, CFA
market analyst, Investor location
