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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: stomper who wrote (10205)	10/8/2008 12:31:19 AM
From: John Pitera	Respond to of 33421

An adaptation for Christopher Carolan's Spiral Calendar. which I truly recommend for those who want a glance at advanced cycle and Fibonacci time cycle work.........(areas that I am still receptive to collaborating and sharing research on.....) Days of Awe, But Not for Stocks Posted by David Gaffen September 11, 2007, 3:16 pm The shofar. Not to be used on the trading floor. (Source: Olve Utne) Sundown tomorrow marks the beginning of Rosh Hashanah, the Jewish New Year, and brings to mind a very old adage among the market cognoscenti, which was originally, “Buy Rosh Hashanah, sell Yom Kippur.” The problem with this, according to Jeffrey Hirsch at the Stock Trader’s Almanac, is that “it stopped working in the middle of the last century.” What’s working now is the reverse — selling on Rosh Hashanah, buying on Yom Kippur – the idea being that more people are closing out positions in advance of spending the holidays with family. It’s not a bad strategy. On average, from 1971 to 2005, the S&P 500 has fallen 0.4% between those days, with a number of real doozies, including a 2.2% decline in 2005 and a 1.9% drop in 2004. (The data doesn’t include 2006, when the market rose 1.6%.) “Perhaps it’s Talmudic wisdom, but selling stocks before the eight-day span of the high holidays has avoided many declines, especially during uncertain times,” Mr. Hirsch writes. Chris Perruna, writing on his blog, notes another potential reason for the occurrence. “September tends to open strong but then closes weak due to end-of-quarter mutual fund portfolio restructuring and many investors getting back into the swing of things after summer vacations, kids back in school and new business years (fiscal),” he writes.