Super Tuesday

What is it about Tuesday that investors and traders seem to like? 

In the US the Dow seems to enjoy Tuesday.

CAN’T wait any longer for that pullback? Just buy on a Tuesday – for the last 18 Tuesdays, the Dow Jones Industrial Average has risen every time. The winning streak began on January 15th, with the Dow since rising by more than 1,700 points. Over 1,400 of those – more than 80 per cent – have been added on Tuesdays, Bespoke Investment Group notes.

Such a winning run is unheard of over the last century, breaking the previous record (15) set back in the 1920s.

The following stat shows that the UK has its own Tuesday moments.

In the UK, Tuesdays have been bullish for some time, says the UK Stock Market Almanac. Since 2000, when the market has fallen on a Monday, the following day’s returns have been five times greater than average.

http://www.irishtimes.com/business/personal-finance/stocktake-rising-risk-of-melt-up-in-five-year-us-bull-market-1.1400770

So far today the US is just hanging on to a gain that will make it 19 in a row.

But there is also some history here.

Tuesdays are up a cumulative 77% since 2003. A distance second, Thursday sessions are up a 10.1%. And forget about Monday and Fridays: They’re down 1.3% and 2.3%, respectively.

This string is a bit less random if viewed through this longer-term lens, but good luck getting someone to explain it — adequately. The Stock Trader’s Almanac gives it a shot by saying that “traders have not been inclined to stay long over the weekend, nor buy up equities at the outset of the week.”

http://blogs.marketwatch.com/thetell/2013/05/21/goodbye-bullish-tuesdays-not-quite-as-market-sets-sights-on-19-straight/

So, making the most of Tuesday would have been a good trading strategy for some time, but will that continue now the cat is out of the bag and we now know? Probably, as in time most will forget and just carry on as before. That means that over time Tuesday will probably continue to be the day to trade, although it may have more meaning for shorter term day or swing traders than those with a longer view.