The Congressional Effect in stocks– we suspect you have never heard of it. Neither had we! But this is one of the many seasonal effects in the stock market. The man behind the effect, hedge fund manager Eric Singer, had so much faith in this seasonal effect that he set up a fund to profit…
Our backtests suggest that NIFTY 50 has a positive end of month effect. A variation of the inputs does not change the result dramatically, thus the end of month effect seems reasonably robust. The end of month effect is well documented in the US stock market, sometimes referred to as the turn of the month…
The Santa Claus Rally in DAX and Euro Stoxx 50 Our backtests show significantly better performance during the Christmas season and the end of the year. The Santa Claus rally is no myth in Europe, either! The end of year rally in DAX40 is alive and well. It’s a pretty well-known “fact” that stock markets…
Trading the week after futures expiration in DAX 40 This article looks at the performance of the DAX futures contracts in the week after the expiration of the contract. DAX 40 was changed in 2021 from DAX 30 and is one of the most heavily traded futures contracts in the world. The contracts expire on…
The Santa Claus Rally In Emerging Markets One of the seasonal strongest periods is approaching: the Christmas holiday. The Santa Claus Rally or the end of the year effect has proven to show strong gains in the US markets and most of the Western stock exchanges. In general, the holiday effect is well documented and…
Can we find the same Santa Claus Rally in NIFTY as we do in the US? We are approaching perhaps the strongest two/three weeks of the year: the Santa Claus Rally or the end of the year effect. We have previously covered this holiday effect in a separate article about the US Santa Claus Rally….
The Thanksgiving and Black Friday effect in the stock market is often mentioned in the news. Is this effect a myth or for real? Is this a good seasonality to be long stocks? The Thanksgiving and Black Friday effects are very strong. We did multiple backtests from 1960 until October 2021 on the S&P 500,…
The fourth quarter is a strong period for stocks. But which five-day period is best? We did a test to find out which calendar days of which month produce the best five-day returns. The best five-day periods to own stocks are in late October, November, and December. The best days are the 27th of October…
Day of the week effect In trading. The weekday effect in trading can be a handy trading edge because trading is about exploiting small trading edges in the market. If you work hard and diversify with different markets, time frames, strategies, and market directions, you can develop a decent portfolio of strategies that hopefully give…
The week after options expiration week is after the third Saturday each month. The week before, the options expiration week, is normally a positive week for stocks. How does the stock market perform during the week after options expiration week? Is it possible to develop trading strategies the week after options expiration week? Our backtests…
