Stock Market Holiday
Calendar Effect In The Stock Market
We all follow the calendar in planning our future so do the markets and so do many economic and business trends. Companies report their earnings quarterly. Tax is collected at the end of the year. Companies close their books for tax purposes at the end of the year. Investors are also evaluated quarterly.
Retail sales follow the holiday season. Demand for commodities follows the growing season. Demand for fuel follows the weather. Keep these three calendar effects; The January Effect, The Monday Effect and The October Effect in mind when you trade Stocks.
So what is the January Effect after all. Is it real and why does it repeat itself every year.January Effect has been observed for the last many decades. It has something to do with the taxes and holiday. Every year, at the end of the year we have file for our taxes. So stock investors tend to liquidate their positions in the last week of December before filing for their taxes. They then reopen their positions in January. So massive selling in December makes the stocks cheap and every year their is a January Rally.
It may also be due to the fact that at the beginning of a New Year, people are flush with excitement and hope for the New Year that just started. They want the market to go up, so they go and buy securities and put their money to work for the rest of the year.
If the stocks go up in January, you could take a jump by buying in December. That would make Stock Prices go up in December and if they go up in December, you could buy in November. This is precisely what people started to do and now you will see a very weak January Effect taking place.
In an efficient market, these price anomalies are spotted by the people and then they trade on them until they disappear. Now some years January Effect can be really pronounced and other years it can be weak. Just use this January Effect to understand the market psychology not as a hard and fast trading rule.
Monday Effect: Monday is a bad day for the markets! People are not happy going back to work after the weekend. Second people spend the weekend analyzing bad news from the past week and just sell when they get back to the office.
The October Effect: Stock market had two great crashes one in October 1929 and the other in October 1987. Due to these two great crashes traders believe that bad things happen in October. Nobody knows why it happened in October but it happen so the October Effect. Tech bubble in NASDAQ market burst in March 2000, so you never know which month is bad!
About the Author
Mr. Ahmad Hassam has done Masters from Harvard. Turn $200 into $100K in just five months with this Penny Stock Trading System! Get these three Stock Trading Reports written by battle hardened investing professionals FREE.
Stock Market Crash 2011, Bank Holiday Bank Runs Next Lehman – YouTube.flv
|
|
New Carson Dellosa Scientific Method 9 12inch By 17inch Posters Supports Nse Standards $25.18 Exceptional customer service and unparalleled product expertise…. |
|
|
New York Stock Exchange Christmas Ornament $24.00 Hand painted festive scene of NYSE building, printed on white ball… |
|
|
New Carson Dellosa Western Bulletin Board Set Wagon Cowboy Steer Bronco Wanted Poster $23.83 Exceptional customer service and unparalleled product expertise. Includes one wagon, 16.25″ x 15″, one cowboy, 10.5″ x 16.25″, one cowgirl, 11.75″ x 15.5″, one steer, 11″ x 8.5″, one bronco, 11″ x 10.25″, one wanted poster, 8.25″ x 10.25″, one header, 23.25″ x 11.25″, two cacti, largest 4.74″ x 8.25″, three pairs of boots, 6″ x 5.75″, two lassos, 13.5″ x 6.25″, 31 badges, 3.5″ x 3.5″, and resourc… |
|
|
New Carson Dellosa Hot Air Balloons Bulletin Board Set Blank White Balloon Overlay Resource Guide $23.83 Exceptional customer service and unparalleled product expertise…. |
|
|
Message On A Bottle – Investments Tanked – Holiday Berry Hand & Body Wash $12.95 Make them smile this holiday season with a “Message On A Bottle”. Serious body care to keep every body smiling. Holiday Berry is a dazzling holiday favorite! The perfect blend of berries and orange with a touch of musk. Enriched with moisturizing avocado oil for silky soft skin. In the bath, drizzle onto a mesh sponge and massage into a rich lather or keep at the sink for a moisturizing hand wash…. |
|
|
Message On A Bottle – Spirit of Giving – Holiday Berry Hand & Body Wash $12.95 Make them smile this holiday season with a “Message On A Bottle”. Serious body care to keep every body smiling. Holiday Berry is a dazzling holiday favorite! The perfect blend of berries and orange with a touch of musk. Enriched with moisturizing avocado oil for silky soft skin. In the bath, drizzle onto a mesh sponge and massage into a rich lather or keep at the sink for a moisturizing hand wash…. |
|
|
Stock Market Changes Decorative High Gloss Ceramic Drawer Knob $2.99 Handcrafted in the USA to the highest standards using a specialized heat fused, high definition image transfer, that is tripled sealed with a UV resistant glass like gloss finish to ensure durability, easy cleaning, and to obtain an enamel hard like finish. Unlike some of our competitors cheaper plastic and wooden drawer knobs, our drawer knobs are made from high grade ceramic, the artwork is guar… |
|
|
Don Cherry’s Rock em’ Sock em’ Hockey – Volume 14 $16.99 Here it is folks! Don Cherry’s Rock ‘em Sock’ em Hockey Volume 14 DVD. Over 1 hour of the greatest NHL action available to the public. From saves, to goals, playoff highlights and more. Don Cherry 14…need we say more? * Language: English * Region: Region 1: U.S. and Canada only. * Number of discs: 1 * Studio: Molsoc Sports * DVD Release Date: April 30, 2002 * Run… |
|
|
New Creative Teaching Press Its A Jungle Out There – Vbs Title Sign 14 Jungle Animals $17.07 Exceptional customer service and unparalleled product expertise. It’s a Jungle Out There! Mini Bulletin Board Set ? Includes a title sign and 14 jungle animals (zebra, gorilla, tiger, parrot, zebra, lion, hippopotamus)…. |
|
|
New Mcdonald Publishing Bulletin Board Set Mathematicians Gr 4-9+ Artwork Activity Cards Headings $18.37 Exceptional customer service and unparalleled product expertise…. |
