With Christmas just a few weeks away, I thought it would be interesting to see how the S&P behaves in the days just before Christmas. Do the days just before this holiday tend to be bullish, bearish, or neutral? To test the market behavior just before the Christmas holiday I will use the S&P Cash index back in 1960. I will create an EasyLanguage strategy that will enter a trade X days before Christmas and close that trade on the opening of the first trading day after Christmas. Each trade will dedicate $50,000 to purchase shares. Stops, and both commissions and slippage are not utilized in this study. Ten Days Before Christmas First let’s look at the ten days before Christmas. What happens […]Read more ›
Post Tagged with: "SPY"
It’s time to look at another simple trading system which can be found in the book, ”Short Term Trading Strategies That Work” by Larry Connors and Cesar Alvarez. In this article we are going to look at the Double 7 strategy. This is a simple strategy that can be applied to the major market indices such as DIA, DOW and QQQ. It can also be applied to the futures markets. The rules of this system are very simple. The instrument must be above its 200 day moving average. If the instrument closes at a 7-day low – buy. If a long position is open and the instrument closes at a 7-day high – sell. The trading system follows two basic concepts we have talked a lot about on this […]Read more ›
Most of us entrust our savings to financial organizations in the belief that this will provide us with better investment results than we could have achieved ourselves. These companies advocate a buy-and-hold strategy of bond- and stock funds, charge fees, and usually perform poorly. A convenient way to improve on buy-and-hold and to do better than financial organizations is to periodically switch one’s investment from stocks to bonds and vice versa as indicated by the Moving Average Crossover MAC-system. The MAC-system (described in Beyond the Ultimate Death Cross) uses cross-overs of moving averages of the S&P 500 to determine investment periods for the stock- and bond market. The key to this model was finding moving averages whose cross-overs have the […]Read more ›
As the common saying states, “Sell in May and go away.” As we are now in early August our seasonality trigger has recently triggered a sell signal. So, through May, June and most of July we continued to hold on our position. If you receive our free weekly newsletter you were alerted to the seasonality switch the week it changed. At this time I think it would be a good idea to review where we stand based upon on our seasonality study. If you will recall, the seasonality study goes long the SPY in November and sells in May. This is the classic seasonality hold period which does appear to hold an edge for the S&P market. In order to avoid […]Read more ›
Looks like System Trader Success is mentioned as a favored website by the Author of this new book entitled, “Anatomy of $SPY on First Trading Day of the Month“. Appears the book is an in-depth study of SPY on the first trading day of the month. I just ordered a copy. Here is the text from Amazon describing the book. Anatomy of $SPY on First Trading Day of the Month takes the most compelling edges from the past and combines them with greatly detailed new analysis. Over 75 pages in length, the book provides incredibly comprehensive detail on First Trading Day of the Month market behavior and probabilities. Kora Reddy shows where the greatest trading edges lie through detailed […]Read more ›