Is this the Mutual Fund effect? Direct deposits from 401ks & RRSPs on the 15th & 30th?
October 23, 2007 The First Day of the Month
Here's a surprising stat. Since the beginning of this decade, all of the market's gain have come on the first day of the month. The rest of the time, the S&P 500 is down.
The blue line represents the first day of the month, the black line is the S&P 500. For the decade, the S&P 500 is up 2.52% and the first day is up 33%.
The last seven first days have all been up. In the decade, there have only been 94 first days out of nearly 2,000 trading days, or about 4.8% of the time.