Chew on this
Market behaviour around Labour Day
The S&P 500 average basis point change between 1980 and 1996 are as follows
Day -3, Day -2, Day -1, Labour Day, Day +1, Day +2, Day +3
-0.06, -0.21, +0.07, Holiday, -0.14, +0.14, +0.15
The best day is the 3rd day after Labour day
Of the three days after labour day only 3 years were losers, 1984, 1987 and 1989. Following 5 weeks in these years losses were 5%, 32% and 7%.
The market is forward looking. If the market percieves a good business cycle is coming upon us then we should see a post labour day rally, otherwise a change in sentiment is indicated.
Kiri |
