The first trading day of the month can offer some great opportunities. Historically, the first trading day of the month is typically an "up" day. Going back to 1982, the market goes up approximately 70% of the time the first day of the month, for an average of over 9 points. When it does go down (~30% of the time), it's only by an average of ~7 points.
Thus, a strategy idea is to BUY on the close of the last trading day of the month or the open of the first trading day of the month. Then, exit on the close of that day. If the first of the month falls on a Wednesday, there is an even greater win percentage!
This year (2011), the last trading day in May is Tuesday the 31st, which puts June 1st on a Wednesday.
As an aside, February and August tend fo favor the downside, so be careful with this strategy during those months.
Good hunting traders!
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