1% gap up Monday morning will frustrate the last shorts and free the way to new highs. I love a zero risk market like this one. A minor blip that got people to panic and now a steady +0.5% per day to new highs!!!!
i thought today would be quite bearish but evidently there was more short-covering than selling. Even negative comments from Fed official Bies didn't do much damage. It looks like it will be up to the Far East to start another stampede downwards. No doubt about it, as a short-term bear, it was not as great a day as I had hoped especially with volatility having been stoked recently. Oh well, another week is coming. Weekend reading should be full of "subprime" news... http://lauristonletter.blogspot.com/
1998 Abstract: Motivated by the recent flurry of activity in sleep research, this paper explores the connection between sleep disruptions following Spring and Fall clock shifts associated with daylight-savings time, and equity returns. It is shown that the "weekend effect" in the form of the lower-than-expected Friday-to Monday returns is particularly pronounced for the two weekends involving daylight-savings clock changes. 2006 Abstract: We find no evidence of a Daylight Saving Time anomaly in stock returns based on empirical evidence of 22 stock markets around the world. Stock market returns on days following a switch from or to Daylight Saving Time do not behave any differently from stock returns on any other day of the week or month. These results reject earlier conclusions in the literature - based on a limited number of countries - that investors' mood changes induced by changes in sleep patterns significantly affect stock returns.