History Shows, Buy QQQ And Sell KRE On Monday

For the Modern Family, Friday was not much more than a continuation of the consolidation that had been going on since Tuesday.

There were some notable exceptions like IYT which had a strong day on Friday, closed of the day and the high of the week and over its 50-DMA.

Acually, a strong Friday is quite normal for IYT. As you’ll discover below, IYT has a history of doing well on Friday, especially when it closes up on Thursday.

The other notable deviant from a week of consolidation was KRE which spent the week falling. Though major support.

Since Friday was quiet, I’ve decided to share some stats that I like to watch that track which instruments tend to trade higher on certain days of the week.

It’s not a magic bullet, but it is fun and informative.

These stats answer questions such as:

When building mechanical systems we like to start with some kind of statistical edge. We haven’t built a “day of the week” system yet, but I like to look at this data and focus on the extremes.

For example, I mentioned above that IYT has a strong tendency to close up on Fridays. As you see in the data below, based on the last 40 weeks, IYT closes up on Friday 69% percent of the time, and 71% of the time when Thursday was an up day.

Here’s a summary table. I’ve include the Modern Family ETFs plus the SPY, QQQ, TLT and FB (for fun and because this is one of the stocks I suggested a trade on for MMM Advantage members next week).

Table 1 below, “Percentage of Days That Closed Up”, shows the percentage of times the instrument closed up vs. the prior day for each day of the week and then “All” represents all days combined. The data includes the last 40 weeks.