1 reply to this topic

[johngeorge]

End of the month trade starts tomorrow AM with a Market On Open order.
"Let's only buy on the opening the day before the last trading day of the month and exit on the open on the fifth trading day of the month. And we'll only take this trade if the index is above its 200-day simple moving average. When we do this, our market exposure is now lowered to only 19%. Yet, the gains in the SPX basically replicate the total points gained while being in the market 100% of the time (753 points vs. 743 points). For the Nasdaq, the gains jump up to 1768 points versus 1217 for buy and hold. And for the SOX, the gains are 952 points versus 293 for buy and hold. The SOX gains are even more impressive because you were only in the market 14% of the time."

http://www.traders-t...odger/index.php

[Rogerdodger]

You're welcome. But remember I just passed on what somebody else researched. There is a tendency for market strength during the end of one month and beginning of another. Doesn't always work. Especially when the market's overbought or has other technical issues, such as losing strong support areas, etc. But we'll see.

Edited by Rogerdodger, 27 September 2007 - 12:00 AM.