Buy Fridays - Sell early the next week

[nioka]

Buy Fridays then sell early the next week, is it a proposition. It seems to me that a lot of the stocks I follow seem to have a bad day every Friday, make that most Fridays, and have a good recovery early the next week. I tend to follow develloping resource stocks. Speculative but not usually "wildcat" ones. I'm interested in hearing opinions on this and would like to see posts made on Saturdays and Sundays suggesting stocks that people think will show this trend during the following week. To prevent blatant ramping I guess posters would need to give a reason for their choice.
Any takers. Any objections from the moderators?

 

[steven1234]

I agree, I have seen the same thing occurring over the past few months. The end of week sell off.

I must admit that in recent weeks some of these stocks were spiking on Friday close. it looks like many buyers were sitting and waiting for the end of the week to pick up bargains and this may have reversed the trend somewhat.

 

[GreatPig]

If you have charting software like AmiBroker or persumably Metastock, you should be able to write a scan and backtest to test that theory.

Cheers,
GP

 

[howardbandy]

Buy Fridays then sell early the next week, is it a proposition. It seems to me that a lot of the stocks I follow seem to have a bad day every Friday, make that most Fridays, and have a good recovery early the next week. I tend to follow develloping resource stocks. Speculative but not usually "wildcat" ones. I'm interested in hearing opinions on this and would like to see posts made on Saturdays and Sundays suggesting stocks that people think will show this trend during the following week. To prevent blatant ramping I guess posters would need to give a reason for their choice.
Any takers. Any objections from the moderators?

Hi Nioka --

I do not have any data related to posting on the weekend.

But I do know that seasonality trading systems work.

I recommend that you study one day close-to-close price changes for the following days:
calendar day of the month.
trading day of the month.
trading day relative to options expiration.

Just looking at day of the week is inconclusive, but it might add value to a system that had other patterns or seasonalities.

Be Very Careful to follow good validation techniques when working with patterns and seasonality -- it is easy to be fooled.

Thanks,
Howard
www.quantitativetradingsystems.com