Thursday, June 25, 2009

Thursday Trivia

A little known fact about Thursday's is that when the market closes within the top or bottom 10% of Thursday's range, Friday tends to close down most of the time. The end of the month shenanigan's may override it this time, but I have seen it enough times to know that it is statistical fact.

3 comments:

dave said...

"...closes within the top or bottom 10% of Thursday's range, Friday tends to close down most of the time."

Are you saying regardless of whether it's within the top OR bottom 10% that Fri tends to close down ?

R. Craig Pritchard said...

Yes.

dave said...

Thank you, hadn't noticed that. But have noticed something similar & just realized a possible reason.

Trading literature that was written several decades ago have always stated that the public trades during the first half hour & "smart money" trades the close.

Increasingly, in the last decade plus have noted less follow-thru to the closing "smart money". Think that may be due to the fact that weren't massive numbers of daytraders decades ago & also due to institutional algorithmic trading which IMO have a similar effect to "borrowed sales" in business.

Regards,
dave