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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?


To: TonyM who wrote (7281)4/7/1998 7:59:00 PM
From: LastShadow  Respond to of 120523
 
Antonio - thats a really good question.

For one thing, I discovered that correaltion about 7 years ago in some academic work, and decided to time some buys on those days prior to holidays. For the most part, it held true. It did not, for example hold true for the recent President's Day. The net factors those calendar days in and give additional weight to that and other cyclical periods, like triple witching days, etc. Right now I am actually waiting for Thursday morning to go long on anything I want to add to the Position Trading Account. But I would have to say that the major rason is because that is wehn I feel the market will be most amenable to entry (ie, one dropping in the sectors I am looking at).

As for the bias/corruption question, the answer is yes, it does. And for that reason, latest data is much more heavily weighted than historical. If it isnt a good time to enter a stock based on all the other reasons, being before a holiday won't help either. If I get time later tonight I will go find some specific stock examples and see if it coorelates - thats is something I will admit to not having done in years. Usually I just look at the indices performance against that seasonality index to verify. Thanks for bringing that up. Worthy question.

lastshadow