While many claim there is no sure way to forecast the market, there are some guidelines that provide genuine assistance in determining what action to take at specified times of the year. These deal with probabilities rather than certainties and have to do with the tendency of the market to act in a particular manner at particular times. The investor can use this bias to his advantage. Stocks normally go up during the summertime and at the end of the year. In Presidential election years, there is a bias toward market strength in March and weakness in April. Various weeks of the months also have a particular bias. The last week in December, January, May, and June tend to show strength, while the middle of January, late March, late April, mid-June, early August, late September, late October, and late November all tend toward weakness. The market has shown a tendency to be strong on the day prior to a major holiday. The day following a holiday has an unfavorable record. Sellers of stock should avoid Monday. Friday is the best day to sell. Buyers should try to buy before the last 3 days of the month.
Full text: Financial World, Sep 15, 1980
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