Market Gems:Stocks w/Strong Earnings and High Tech. Rank Message Board

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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: LastShadow who wrote (2378)	8/25/1997 10:23:00 PM
From: LastShadow	of 120523

Pre-Holiday Seasonality Effect: Labor Day Stock prices historically react in a significant positive manner on the two days preceding a holiday market closing. The most likely explanation for this is that traders wish to lighten up the short side of their portfolios as a hedge against unexpected good news while the market is closed. The historical average of the cumulatively compounded percentage market gain in each of the two days just prior to the Labor Day holiday closing are as follows: Percentage Return Day 1 (August 28th) - 16.8% Day 2 (August 29th) - 33.7% The Labor Day Holiday is the third most productive period, following only Independence Day and New Year's. I suspect this is because the month-end effect weights these periods. This market behavior implies one accumulating stocks for mid and longer term hold should do so Tuesday and Wednesday, and look for major intraday trading opportunities throughout Thursday and Friday. FWIW, my experience suggests that stocks with share prices above $25 and trading more than 100,000 shares daily are the best candidates. lastshadow

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