which way do the markets usually go after a bank holiday?

malik999

gozomark wrote: »

so if I checked, Id find say in atleast 20 of the last 25 years that April was the best month of the year for markets ?

Yes correct.

gozomark wrote: »

I somewhat doubt that

I don't care. Doubt away.

tuggy12

This could see a boost for UK banks on Tuesday:

http://finance.yahoo.com/news/Goldman-1Q-earnings-surpass-apf-14915037.html

G_M

sometimes they go up , sometimes down.

And sometimes they just sit there not moving.....

Money_Grabber13579

It'll probably have the same effect as the weekend effect has on the markets. In general they will open lower after a weekend because of the the news that hasn't been processed into the share price. However, this does not mean that they will open down. No one can predict the markets.

cepheus

David Schwartz compiles these sort of statistics although I'm not sure if any are significant. Here is his latest

http://www.londonstockexchange.com/en-gb/pricesnews/education/interchange/authors/DavidSchwartz/

nzseries1

G_M wrote: »

And sometimes they just sit there not moving.....

Phew, it was hard enough contemplating that they could go up or down... and now this!!! Oh gosh! :rotfl:

Money_Grabber13579

Money_Grabber13579 wrote: »

It'll probably have the same effect as the weekend effect has on the markets. In general they will open lower after a weekend because of the the news that hasn't been processed into the share price. However, this does not mean that they will open down. No one can predict the markets.

And true to form, they opened down! :beer: Although they quickly recovered because of banking news.

Reaper

Money_Grabber13579 wrote: »

In general they will open lower after a weekend because of the the news that hasn't been processed into the share price.

I can't see the sense in that. Yes they need to process the news over the weekend but that news is just as likely to be good as bad.

I am also dubious there are any predictable patterns. As soon as there are some chartist with a computer sets it up to make money e.g. selling on a Friday and buying again on a Monday, so if any trends ever do apear they quickly get traded away.

Money_Grabber13579

Reaper wrote: »

I can't see the sense in that. Yes they need to process the news over the weekend but that news is just as likely to be good as bad.

I am also dubious there are any predictable patterns. As soon as there are some chartist with a computer sets it up to make money e.g. selling on a Friday and buying again on a Monday, so if any trends ever do apear they quickly get traded away.

If markets were efficient, this would be true and nobody would be able to make money off this. However in reality, markets aren't efficient and these patterns do occur! It's the same with the December effect, in that loads of selling occurs in December and then they buy again in January, even though it doesn't span a tax year end. If you look up the EMH, you'll find that none of them really fit properly!

mrposhman

Money_Grabber13579 wrote: »

If markets were efficient, this would be true and nobody would be able to make money off this. However in reality, markets aren't efficient and these patterns do occur! It's the same with the December effect, in that loads of selling occurs in December and then they buy again in January, even though it doesn't span a tax year end. If you look up the EMH, you'll find that none of them really fit properly!

Doesn't December usually work the other way around.

A certain mr robbie burns seems to think so as this is usually the only month he says he trades the indices as they generally RISE over christmas time into January.