The stock market tends to make most of its gains during the following trading days of the month:
- last 3 days
- first 2 days
- days 9, 10, and 11 (probably because of 401k inflows).
- Yale Hirsch in the Stock Traders Almanac calls these days - the last 3 plus first 2 plus days 9-11 - the "Super 8 Days." They have gained 2.2% v. -.43% for all other days of the month for the last six years (2000-2006).
Note that these are trading days, not calendar days, sent to follow or incorporate the strategy, you must count the number of trading days from the beginning and until the end of the month.
- Stock Trader's Almanac, 2007
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