Monday, September 19, 2011

The Weakest Week

The week following September options expiration has historically been the most bearish week of the year. I showed some detailed stats in my weekend report, but below is a graphic that shows how consistently weak this week has been.

Seasonality is not normally a reason to sell on its own. When combined with a long-term downtrend and a short-term overbought market, it can often provide a pretty good signal.


KC said...

Thanks for this Rob, I'm enjoying going through your FED Days book. Seeing as we're in a week with an FOMC meeting, which you show has historically strong performance prior to the meeting does this study include the FED days effect?

Michele said...

Nice chart - shows the depressing picture really well.