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This is a site for investors and traders of all experiences and all backgrounds. My intent is to make concepts understandable for the novice investor as well as the experienced trader. The mission is to educate the investing public by bringing to light vital tools and information necessary to make money in the stock market.



Our 6 to 12 month outlook in the stock market: Positive

Tuesday, December 14, 2010

Market Anomaly

At my firm I back-test, back-test and back-test... and when I feel okay about a new approach I back-test some more. Here's an interesting anomaly that I found the other day. You can put it in your trading arsenal. This isn't a 'stand alone' system, but nonetheless, it is rather impressive.

Did you know that on the closing bell of the 3rd Friday of July, August, September and October, the S&P 500 loses -17% (over the next 5 days) on an annual rate since 1942? With everything being equal, one should either, exit their 'long' positions or open a 'short' position during these periods.
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