What a Difference a Day Makes!

Seasonal analysis of stocks is the study of statistical patterns related to times of the year. But if you really want to optimize the potential gain and probability of success of a trade, you might also consider what day of the week to enter a trade on.

Mondays are popular days for entering new positions because many traders and investors use the weekend to evaluate new trade possibilities. However, many stocks (and indexes) have better track records for trades entered on other days of the weeks.

The best day of the week to enter new trades can vary from stock to stock, and from week to week. Let's say that over this past weekend you noticed that several building and construction-related company stocks are doing well. Specifically, you narrowed your investigation down to the stock of Comfort Systems USA (symbol FIX). Their website states ‘Comfort Systems USA has become America’s leader in installation and service for building mechanical systems. Over the years, we’ve merged with the best regional experts, and now provide nationwide reach through 36 subsidiary companies that are prepared to build, service or retrofit any mechanical, HVAC or electrical system.'

While the stock recently went through a 29% pullback (like most stocks), it has recently rebounded on strong volume. You see evidence the stock has been under accumulation for much of the past year, and you feel that FIX is likely to continue a rebound. Comfort Systems has good fundamentals, including an earnings growth rate averaging 29%, a strong relative strength rating, and the number of funds holding the stock has risen 40% over the past year. And you notice that one Director of the company has been regularly buying shares of the company, usually in chunks of $100,000 at a time.

You decide you are going to buy shares of FIX this week.

Now, if you are a small investor, it makes little difference when you buy the stock. As long as the overall market is not selling off, and FIX trades on the upside on Monday morning, it would make sense to buy the stock soon after Monday's open.

But now say you short-term trade rather large amounts. A 1% difference in results can add up, so you look for every advantage in a potential trade. In that case, you might want to investigate the best day of the week to enter a new trade in FIX.

For the week of March 7th, historically, if you entered a trade in FIX on Monday morning, 18 sessions later you would have averaged a 3.2% gain:

But what if you waited until Tuesday to enter the trade? At the same target date, now 17 sessions from trade entry, you'll see that FIX has averaged a much higher gain: 5.3% versus 3.2%. Waiting a day to enter the trade each year would have averaged a 2.1% higher average gain.

Now look more closely at the two charts. In every year but one, the gain (or loss) for entering on Tuesday was the same or better than the gain (or loss) for entering on Monday.

Not all stocks show daily trade-entry patterns as pronounced as the track record of FIX. But if you trade large amounts, and want every advantage possible, consider researching the day of week track records yourself or finding a source of this information.

Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day.  To find out more, please click on the following link: www.markettamer.com/seasonal

By Gregg Harris, MarketTamer Chief Technical Strategist

Copyright (C) 2016 Stock & Options Training LLC

Gregg Harris is the Chief Technical Strategist at MarketTamer.com.

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The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

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MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.