Market Comparison: Day of the Week Analysis
What’s the best day of the week to trade? The “Monday Effect” suggests that traders like to buy on Mondays after they digest any bad news that may have occurred over the weekend. Perhaps it’s best to wait until “Turnaround Tuesday” to fully flush out any bad news. Still, further, wait for the safety of Hump Day, mid-week to make any new purchases. By Thursday or Friday, it’s too late in the week to buy, as traders are looking to unwind positions before the start of the weekend.
Let’s dispel the antidotal folklore of the past and take a look at a diverse basket of markets to see which day of the week truly offers the best opportunity. The two tables below breakdown performance based on average daily returns and percent profitable (e.g. accuracy) based on 31 years of data.
The questions is … Which day of the week offers the best buying opportunity?
Calendar Breakdown by Events
All trading involves risk. Leveraged trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed. The past performance of any trading system or methodology is not necessarily indicative of future results.
Our strategies have not been developed based on knowledge of or with reference to your particular circumstances, such as financial position, goals, risk-reward preferences, tax situation, brokerage arrangement, investment or trading experience, and so forth. Hence no content or model published here constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. More