Tuesday, September 25, 2012

Turnaround Tuesdays Revisited

It’s been a while since I updated the Turnaround Tuesday study, so I thought I would do so today.  The stats tables below all show results of buying at the close when SPX is down for a certain number of days and the exiting the following day.  The results are broken out by day of the week.  Note that the day listed is the trigger day – not the performance day.  So the Monday trigger tracks Tuesday’s performance.  Tuesday’s trigger tracks Wednesday’s performance…and so on.

In every case Tuesday has shown the most gains – hence the Turnaround Tuesday reputation appears well earned.  Though it wasn’t the highest percentage in every case, it was the strongest day on average.

Interestingly, I this time I also looked at instances where the SPX had pulled back more than 3 days.  Those results are shown below.

Under conditions of a 4 day or greater pullback Tuesday has disappointed.  Monday has been the standout winner.

But none of this tells the whole story.  For a more detailed breakdown of overnight vs. day gains I would suggest checking out the Overnight Edges TurnaroundTuesday study.  Results there are quite intriguing.

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