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Benefit from the Monday Market Blues
Posted by: Dr. Paul Price (IP Logged)
Date: September 15, 2012 11:29AM
Mondays: Good, or Bad for you?
Research outfit Bespoke Investment Group noted that 17 of the past 19 Mondays had shown negative share price movement. That is about as bad a Monday streak as any since 1920.
Last Monday the DJIA continued the trend sinking by 52.35 points. The other four days ended up widely positive with the full week showing a 2% gain. Many traders, aware of this pattern, have avoided buying on Mondays.
Chart Source: Barrons Sep. 15, 2012
Was that logical if your time horizon is typically longer than 24 hours? If you are looking to put on a position wouldn’t you be better off buying when prices are low? The best day to buy last week was MONDAY when prices were depressed- not later when euphopria was in the house.
Fight group think to get stronger results. Identify stocks you want to own then initiate or increase positions on weakness. You’ll always need to pay extra if you insist on having crowd sentiment agree with you.
Stocks Discussed: BAC, INTC, AA,