Interesting Stock Market Trivial
As a professional, full time trader and hedge fund manager, I am always lookingfor interesting trivial in the US stock markets. Here is a list of 10 of the mostinteresting ones that I have collected so far.
Chances are better than 2 to 1 that in the next time period, the stockwill move in the same direction it did in the last time period.
If a stock makes a large move (over 10%) in a single month period, theodds are greater than 2 to 1 that it will move in the opposite direction inthe next monthly period.
Trends tend to persist for a significant period of time, therefore bettingagainst the trend is dangerous.
Friday is the best day for the market, and Monday is the worst. Fridayshave averaged an increase of 0.085% while Mondays have averaged adecrease of 0.089% over the last 50 years.
For the past 50 years, the gain in the Dow-Jones Industrial averageduring the first six calendar days of each month has been greater thanthe entire gain for the month.
Over the past 50 years, chances are a better than 2 to 1 that the Dowwill rise on Christmas Week against the previous week. We call this the“Santa Claus Rally”.
Over the past 4 years (2001 – 2005) , the stock markets have fell onthe last trading day before Christmas.
The lowest level the Dow has ever gone to is 40.60 points on 3
July1933.9.The Dow Jones Industrials Index has existed since 1915 while theNasdaq Composite Index has only existed since 1990.