Day of Week Seasonality Effect

Day of Week Seasonality Effect

Day of Week Effect in Stocks - Key Points

The day of the week seasonality effect in stocks is strong. Some days are simply better than others.

Previously there has been a certain day-of-week seasonality in the S&P 500. Here is a summary of the average gain since 1. January 2010 until the 1st of July based on weekdays:

 Close toClose toOpen toClose %Close %Open %Open %
 closeopencloseto lowto highto lowto high
Mondays0.050.08-0.030.64-0.630.68-0.59
Tuesdays0.14-0.030.180.82-0.590.65-0.76
Wednesdays0.050.040.010.71-0.630.70-0.64
Thursdays0.040.06-0.020.83-0.640.85-0.61
Fridays-0.06-0.01-0.050.66-0.650.71-0.59

Explanation:

Close to close: Mondays are from close on Friday until close on Monday

Close to open: Mondays are today’s open based on close on Friday

Open to close: Mondays are average gain from open until Monday’s close

Close % to low: how far close is above today’s low

Close % to high: how far close is below today’s high

Open % to low: how far open is above today’s low

Open % to high: how far open is below today’s high

During this period the S&P has risen about 24%. And as you can see, the best days seem to be early in the week.

I’m just posting these numbers now so the readers can have a look at it. Later I’ll try to make some profitable strategies based on these numbers.

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FAQ:

– What does the analysis show regarding the average gain in the S&P 500 since January 2010 until July 1st based on weekdays?

The analysis provides a summary of the average gains for each weekday in the S&P 500 during this period, considering different factors such as close to close, close to open, and open to close percentages.

– What are the main takeaways from this analysis of the day of the week effect in the S&P 500?

The analysis reveals that certain weekdays exhibit stronger average gains compared to others, with early weekdays generally performing better.

– Are these findings specific to the S&P 500, or do they apply to other stock indices as well?

The analysis focuses on the S&P 500, and it’s not clear whether similar day-of-the-week effects apply to other stock indices. Further research may be needed to explore other indices.

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