Custom Search

Thursday, July 9, 2009

July Stock Market Patterns

According to Stock Traders Almanac:

  1. First half generally stronger.
  2. Market often gets creamed in second half when a bear market is in progress. Time will tell whether we are still in a bear market again.
  3. Market volatility often takes hold after July 4th.
  4. Expiration week has been a mixed bag. 7.7% Dow loss in 2002, 3.6% gain last year.
  5. Week after expiration astrocious. Dow down 7 of 11 years.

So, investors are better off on the sidelines this month.

According to one expert market timer:

  1. Week before July’s options expirations week tends to be negative by the time it ends.
  2. Expiration week tends to be negative, down 6 of the last 9 years. Dow lost a big 4.4% on the July options expirations day alone.
  3. Week after July expirations also tends to be negative, having been down 7 of the last 11 years.

(Added July 10, 2009)

For other historical patterns, visit CNBC News. There is a new section on Today in US Market History - historical stock market performance for the day. Click on the current day's history and you will be able to see the Month's, Quarter's and Half's historical performance. Remember, "History is a Guide, not Gospel".

A link is also provided in this blog, on the right handside under My Favourite Market News - Today in US Market History.

Bookmark and Share


DISCLAIMER: All contents in this blog are for educational and informational purposes only and should not be construed as investment advice regarding the purchase or sale of stocks or any other investments. Please consult with your financial advisor before making an investment decision regarding any mentioned investments.
I assume no responsibility for your trading and investment results.
Abdul Munir | Daya Earth Blogger Template