Thursday, December 27, 2007

ETF Investing - Investing and Swing Trading ETFs on a Friday

For the past 10 years research suggests Mondays and Tuesdays are the most consistently bullish days of the week for the Dow Jones Industrial Average and Thursday and Friday are the most bearish.

How can market participants take advantage of this phenomenon?

To increase the probability of success, try to time your trading methodology so it corresponds with the bullish/bearish day phenomenon. Additionally, the study researched large cap stocks, so I would keep a list of the large cap ETFs I’m interested in handy.

For starters here is a few:

Symbol - Description

DVY - iShares DJ Select Dividend Index
IVE - iShares S&P 500/Barra Value
IWD - iShares Russell 1000 Value Index
IWF - iShares Russell 1000 Growth
DIA - Diamonds Trust, Series 1
IVV - iShares S&P 500 Index Trust
IVW - iShares S&P 500/Barra Growth
IWB - iShares Russell 1000 Index Trust
OEF - iShares S&P 100 Index Fund
PWB - Power Shares Dynamic Large Cap Growth
SPY - S&P Depository Receipts

This doesn’t mean every Thursday & Friday are good days to enter positions at favorable prices, but knowing a little extra statistical data can assist Portfolio Managers, Swing Traders and Investors manage risk better and increase their P&L.

Keep in mind, this is not investment advice and should be used for educational and informational purposes only. The bullish/bearish phenomenon, as with any trend can change at any time.

ETF Updater
http://etfupdater.com/

New Format for ETF Investing Strategy Newsletter

For 2008 I will be posting with this new format so you can have a better and more efficient learning experience.

Here are the benefits:

Ability for readers to comment
Better Searching
Post archives
Remember, I actively invest and trade these ETFs, so always assume we already own them.

The ETF Investor Strategy is not a solicitation to purchase or sell securities. I do recommend you consult you financial advisor for suitability.

ETF Updater
http://etfupdater.com/