Most traders and investors have heard that you need to sell in May and go away. Is this just a myth or is it correct? Three years ago I wrote an article about this, but this article covers a longer time span. Let’s find out by looking at the historical numbers: My data is the…
Sell in May – myth or fact? Sell in May and go away must be one of the most famous phrases in the stock market. But is this adage a myth or a fact? Is sell in May and go away true? Plenty of myths in the stock market have never been backtested properly. There…
The end-of-month seasonality is strong in stocks. A more updated version of the end-of-month effect was made not so long ago. Let’s make an update and see how it has performed since then: End of Month Trading Strategy In plain English the strategy is like this: Entry: Day 29, 30, or 31 of the month…
One famous seasonality in the oil market is the tendency for the oil price to rise on Fridays. Let’s see the Friday seasonality in the oil price. Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] We buy the day before – Thursday. It seems like just buying on any Thursday’s close is not such…
Below you can find the gain each year from 1997 until 2011 in OBX. It’s divided into two: The whole of December and the 2nd half of December. The 2nd half is from the close of the 15th or the day before if the 15th was on a weekend. OBX consists of the 25 most…
A well-known “fact” is the end-of-month rally in stocks at the end of the month and the first day(s) of the next month. It’s a lot about it on the web, but as far as I can see no actual hard numbers and strategies. Do stocks go up at the end of the month? Let’s…
The day of the week effect in stocks is strong. Some days are simply better than others. Previously there has been a certain day-of-week seasonality in the S&P 500. Here is a summary of the average gain since 1. January 2010 until the 1st of July based on weekdays: Close to Close to Open…
