The Weekend Effect and Monday’s Rally

What to watch for this week. To view this email as a web page, go [here.]( A Community of Traders Averaging 22% Per Trade I’ve worked hard to build a community of trading students I call the 1K Club. Inside, my trade recommendations have averaged a 22% return per trade. Want to learn more? [Watch this presentation to learn how I made the 1K Club a reality]( Hey There! What a wild trading day we had yesterday! The early selloff looked like it was going to keep dropping until we finally found support at $420. But then the reversal of all reversals came and we finished in the green! How did this happen? And could anyone have seen it coming? Well, yes, actually. The early selloff was predictable. How? A few reasons… the first is the [Weekend Effect]( which you can read about there. But basically, it says that Monday’s returns are almost always significantly lower than the preceding Friday. It also says that trends usually continue through the weekend into Monday. So when you have a Friday like we had in a selloff trend, it is almost guaranteed to carry into Monday morning. In fact, if you notice, Friday’s red candle has no bottom wick. Meaning it was running down all the way until the market closed and beyond! That’s about as bearish as you can get! But if you take a look at the daily candle from Monday, you can see the buyers came in and pushed the stock up into the close. (Long wick at the bottom, no wick at the top) That’s a very bullish sign, especially at the bottom of a bearish trend! We have tech earnings rolling out this week, and they could provide a boost to keep the bullish push going. Weak earnings could kill the volume and might allow a selloff to continue. So keep an eye on the earnings and how they move the market. It will tell us a lot about the confidence that the bigger investors have, and could give us clues on the direction of the market over the next couple of weeks. Happy Trading! Markay [Manage Your Email Preferences]( [Unsubscribe]( This email was sent by: InvestPub 495 Town Plaza Avenue Ponte Vedra Beach, FL, 32081, US [Update Profile]( We respect your right to privacy. [View our policy.]( Markay Latimer and InvestPub do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.