More than the entirety of the S&P 500's capital gain since 1932 has come during the 7 days...

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Paulo Santos Comments (11685)
 
And the first day of the month is by far the most powerful. Check this:

SPX Seasonality You Can Play With
http://seekingalpha.co...
1 May 2012, 12:00 PM Reply Like

larocag Comments (960)
 
"he quickly added" and was smart enough not to read too much into it.
1 May 2012, 12:15 PM Reply Like

Paulo Santos Comments (11685)
 
But there might be something in it, there are many seasonal components to money flows. There are some known seasonal components to stock prices, like the end-of-year effect from money being put to work on pension funds (that ought to perhaps be smaller now). It's not a stretch for there to be something that consistently brings in money into the market at the start of the month (like 401k contributions, wages or something).
1 May 2012, 12:17 PM Reply Like

larocag Comments (960)
 
and the HFT algorithms don't know about this.
1 May 2012, 12:18 PM Reply Like

tomhill922 Comments (2)
 
Seven days before and seven days after, sounds like a modified rhythm method for investing.
1 May 2012, 01:13 PM Reply Like

dieuwer Comments (1780)
 
One the 1st Day: Jamie did God's work and created money and the market. And he saw it was good.
On the 2nd Day: Jamie created bonds. And he saw it was good.
On the 3rd Day: Jamie created stocks. And he saw it was good.
On the 4th Day: Jamie created commodities. And he saw it was good
On the 5th Day: Jamie created high-frequency trading algorithms. And he saw it was good.
On the 6th Day: Jamie created the muppets. And he saw it was ...useful.
On the 7th Day: Jamie took a rest as the muppets did The Work for him and made him rich at the expense of everyone else.

lol
1 May 2012, 02:00 PM Reply Like

John Math Comment (1)
 
Norman Fosback began publishing a seasonality trading approach utilizing month end and holidays starting back in the 1970's. Using his approach a trader is invested in the market less than 30% of the time but supposedly captures most of the market gains and avoids most of its losses.
1 May 2012, 02:02 PM Reply Like

fguido1821 Comment (1)
 
looks like europe and china are the bears because their gone today!
1 May 2012, 02:15 PM Reply Like

Jolly_Rancher Comments (522)
 
And he captures dividend a little less than a quarter of the time, 7/30. Might be a quarter of the dividends. I don't know how ex-dividend dates are distributed through the month.
1 May 2012, 02:58 PM Reply Like