Rule of Friday

Discussion in 'Trading' started by mikeenday, Sep 9, 2011.

  1. mikeenday

    mikeenday Guest

    if it closes almost low of the day, you have high probability to have a gap down Monday.

    so no need to close your short positions. and a good day to open some shorts 5 minutes before market closes today.
  2. data?
  3. mikeenday

    mikeenday Guest

    my personal observation.

  4. also a high poss of a big gap up due to news flow.

    so I know you kept your $3.59 in your pocket.
  5. in my small long term portfolio i bought a little itw and tnk 5 minutes before the close today
  6. maybe not:

    After Down Fridays Over The Past Year...
    One place there has been an edge over the last year is in buying Fridays that closed down. Below is a study that illustrates this.
  7. gmst


    There is a subtle difference. That blog measures all down Fridays. OP is saying sell those Fridays which close near day's low. You can arbitrarily assume that a 2-5 points close within day's low meets OP's condition and then test to see if OP's observations have merit or not.
  8. mikeenday

    mikeenday Guest

    as planned, I have the following positions: (not opened today though)

    shorts: MGM, GS

    over the weekend.

  9. the other subtle difference is one is actual data. But with a 75%+ win rate I'll go with the data.

    It is also not just the last year. Many years ago Joe Krutsinger wrote the buy on Friday/sell on Monday system. It does well long term the and the edge is going against the risk averse public.
  10. gmst


    I have not tested above and am not aware of Joe Krutsinger's study. I don't even know who he is :)

    But, I have a feeling that the edge being going against the risk averse public and public trying to not run positions during weekend sounds true. Thanks
    #10     Sep 9, 2011