It has long been accepted that the stock market performs best on capital inflow days, such as the beginning of the month, or Mondays (also known as “merger” or “mutual fund” Mondays). Specifically, looking at market performance for just Monday’s from the beginning of 2010, and comparing it to the cumulative “rest of the week” performance, shows a ridiculous outperformance of 16.7% (just for Mondays) to 1.3% (for the ROW) – a miracle anyone even pretends to trade on all non-Monday days.
Combine that with EOM buying, 7/30 should be up 1,000 points on the $DJX or not.
Hey Dimon:
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