Over the weekend, I read an article at Phil’s Stock World written by Trader Mark entitled, “What the Heck is Going on with Mondays Lately?  Always Up!“  I initially had skepticism after reading about the recent tendency for Monday’s to be big up days, but after today’s action, I’m giving it a second look.

Here’s an updated chart as of Monday afternoon Nov 23 on the S&P 500:

(Click for full-size image)

Using TradeStation, I’ve colored each Monday since May purple (PaintBar) for comparison.

Of the 29 Mondays shown above:

20 Mondays up (12 were ‘large’)
6 Mondays down (4 were ‘large’)
3 were “dojis” or roughly unchanged

Trader Mark reported the following data:

“Of the last 8 Mondays, 7 were up, 1 was down, and the average gain of these “up-Mondays” was +1.28%.”

As of this writing just after noon EST, we are up almost 1.50%.

Great call by Trader Mark – he’s definitely on to something with the data!

As to why, data do not necessarily answer the “why” question, but the “what/how much” question.

Let’s see how long this string of up-Mondays can last and if this is a short-term trading edge or tendency.

Corey Rosenbloom, CMT
Follow Corey on Twitter:  http://twitter.com/afraidtotrade