If it's Tuesday, you should be trading
In 2018, Tuesday has accounted for three of the S&P 500’s five best-performing days
New York — Here’s a new trading strategy, a rigorous quantitative model: make sure you own stocks on Tuesdays. History shows that not holding the S&P 500 on the day of the week that turns out to be the best one reduces your annual return to 6.5% from 9.1%, according to data compiled by Evercore ISI that goes back to 1980. Also, it keeps coming true. While stocks are poised for the worst month since February, Tuesdays have delivered an average 0.7% gain, with yesterday boasting a 2.2% jump, the second-best rally of 2018. “We are not arguing that Tuesdays hold some special position in the markets — though we would be interested in reasons for this phenomenon; just pointing out a quirk,” Dennis DeBusschere, Evercore ISI’s head of portfolio strategy, wrote in a note to clients. Besides being quirky, the existence of “turnaround Tuesday” does highlight a hazard of market timing, how missing big days or failing to observe some utterly random variable, has the potential to torpedo your ret...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.