Event: Summer Solstice
The Summer Solstice marks the beginning of summer in the Northern Hemisphere on June 20th, 21st, or very rarely on the 22nd. The specific date varies based on a leap year, although most of the time it will fall on June 21st. By definition, Summer Solstice is the point at which the Earth’s axis is tilted directly at the Sun resulting in the longest day of the year. This astronomical definition of summer will last until the Autumn Equinox. From a meteorological point of view, it should be noted that summer begins on June 1st.
The questions is … do the markets grow or wither in the heat of summer heading into the Summer Solstice?
Market Comparision
How do the markets perform leading up to and including the Summer Solstice? The analysis table below breaks down each of the 30+ markets into four separate trading periods. These time frames span 6-days, 4-day, 2-days and the event day itself. The return performance for each time frame is measured against its normal performance during the year to calculate a final over or underperformance return. This metric quantifies, in percentage points, the advantages or disadvantages associated with the Summer Solstice. Markets highlighted with a checkmark or an “x” should be closely monitored for potential strength or weakness heading into the event.
Calendar Breakdown by Events
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