Back on March 7th, I posted an article called What a Difference a Day Makes!
In the article I pointed out that some stocks have not only strong seasonal track records, based on weeks, but the day of the week you buy the stock can also make a difference in your results.
The example I gave was if you had decided to buy Comfort Systems USA, symbol FIX, that morning. I wasn’t recommending that particular stock on that particular day. I was just giving an example of a quality stock that had a good seasonal pattern for that time of year.
I showed that the trade had a track record of a 2.1% higher gain, 18 days later, if you had bought the stock on each Tuesday, rather than on Monday of each week.
So what happened this year? Say you had bought FIX on Monday morning, March 7th. By the close of March 30th, 2016, which was 18 trading days later (the time period I used in the March 7th article), FIX was up 5.9% from the Monday entry.
But if you had waited until Tuesday morning to enter the trade, by the close of March 30th, you would have had a gain of 6.5%. Once again, entering a long position in Comfort Systems USA (FIX) during the second week of March, by waiting for Tuesday rather than immediately on Monday, resulted in a higher profit a little over three weeks later.
Now say you are running a hedge fund and you were going to buy 10,000 shares of FIX at the start of the March 7th week. Armed with the knowledge of FIX’s daily patterns, your open profit on the FIX trade would currently be $6,000 higher if you had waited until Tuesday, the March 8th, to place the trade. The ‘Tuesday’ pattern worked again this year. That’s now 18 out of 19 years.
Studying stock statistics can not only be fun, it can be profitable!
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
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Gregg Harris is the Chief Technical Strategist at MarketTamer.com.
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