We wanted to shares some statistics on recent market activity that we find truly amazing. Long term StockYard subscribers will recall how we have discussed for over a year the tendency for the equity markets to have extremely positive results on the first trading day of each month. In fact, the entire gain of the past several years can be traced to just being in the markets on the first trading day of the month. It has been a very effective method of capturing gains with limited risk exposure to the markets.
After the gains on Monday January 25 the Dow Jones Industrial Average (DJIA) has now risen an incredible 19 of the past 21 first trading days of the week (either Monday or Tuesday after a holiday). Even more interesting is the fact that 80% of the rally from the March 2009 low can be traced to the gains that have occurred on these first days. This certainly could be the fodder of conspiracy theorists and we have no logical explanation but we do like to track price behavior. Always follow price action in your trading and it will lead you to many new discoveries.
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DTI Partners, Inc.
1.800.745.7444
