There are some speculative investors who use the trading calendar as a reference as of when to buy and sell for their investments. To me, they doesn't make sense. However trading volume can change sometimes due to speculations by their believers and it may subsequently affect the general sentiments of other investors.
Let me share a few with you today.
1) January or Capricorn Effect
The January Effect occurs because many investors choose to sell some of their stock right before the end of the year in order to claim a capital loss for tax purposes. Once the tax calendar rolls over to a new year on January 1st these same investors quickly reinvest their money in the market, causing stock prices to rise.
2) The October Effect
Some investors may be nervous during October because the dates of some large historical market crashes occurred during this month. Black Monday, Tuesday and Thursday all occurred in October 1929, after which came the Great Depression. In addition, the great crash of 1987 occurred on October 19, and saw the Dow plummet 22.6% in a single day
3) Black Monday Effect
The title given to one of the most notorious days in recent financial history. On October 19, 1987 the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning of a global stock market decline. Interestingly enough, the cause of the massive drop cannot be attributed to any single news event, because no major news event was released on the weekend preceding the crash.
4) Santa clause Rally
The rise in stock prices that sometimes occurs in the week after Christmas, often in anticipation of the January effect.
5) Halloween effect
The Halloween indicator is a theory that the period from November to April inclusive has significantly stronger stock market growth on average than the other months. This gives rise to an investment strategy known by the saying Sell in May and go away, in which stocks are sold at the start of May and the proceeds held in bonds or a deposit account; stocks are bought again in the autumn, typically around Halloween (the end of October).
Let me share a few with you today.
1) January or Capricorn Effect
The January Effect occurs because many investors choose to sell some of their stock right before the end of the year in order to claim a capital loss for tax purposes. Once the tax calendar rolls over to a new year on January 1st these same investors quickly reinvest their money in the market, causing stock prices to rise.
2) The October Effect
Some investors may be nervous during October because the dates of some large historical market crashes occurred during this month. Black Monday, Tuesday and Thursday all occurred in October 1929, after which came the Great Depression. In addition, the great crash of 1987 occurred on October 19, and saw the Dow plummet 22.6% in a single day
3) Black Monday Effect
The title given to one of the most notorious days in recent financial history. On October 19, 1987 the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning of a global stock market decline. Interestingly enough, the cause of the massive drop cannot be attributed to any single news event, because no major news event was released on the weekend preceding the crash.
4) Santa clause Rally
The rise in stock prices that sometimes occurs in the week after Christmas, often in anticipation of the January effect.
5) Halloween effect
The Halloween indicator is a theory that the period from November to April inclusive has significantly stronger stock market growth on average than the other months. This gives rise to an investment strategy known by the saying Sell in May and go away, in which stocks are sold at the start of May and the proceeds held in bonds or a deposit account; stocks are bought again in the autumn, typically around Halloween (the end of October).
1 comment:
The technicians are crazy people and "puntang" or superstitious just like
grand mothers of old. They can bet on any things and if you have enogugh people to believe they become self fullfilling. That is what these people believe. They make wall street more exciting and investing more interesting.
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