Usually Small Gains the Week Before Memorial Day

Usually Small Gains The Week Before Memorial Day

By Gregory Clay

Wednesday, May 24, 2017 9:56 AM EDT

Trading Strategy

As reported by Jeff Hirsh in the Almanac Trader, over the last 21 years, DJIA has advanced just 47.6% of the time during the week before Memorial Day weekend. Of the five major indices we frequently cite, it is the weakest averaging a 0.29% loss.

S&P 500, Nasdaq and Russell are better, but average performance over the last 21 years is still just a fractional gain. Russell 2000 has the best track record, up 71.4% of the time with an average gain of 0.42%. Since 2003, Russell 2000 has been even stronger, up 12 of 14 weeks with an average 1.17% gain.

The updated graph below confirms investors are in a bullish mode with all the S&P sectors moving higher over the past month. The path of least resistance is higher and “buying the dips” continues to be a viable investment strategy. Also we are generating good profits from credit spreads as stocks basically continue to trade range-bound.

Disclaimer: Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be ...

Disclaimer: Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

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