Quote:
Originally Posted by collie1228
Gene, thanks for following this and keeping the books. You didn't get a lot of comments, but I noted there are 558 views of this thread, so someone was following your reports. Good job - I hope you do as well next year, and get an even bigger return!
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What's the big deal of making 1.9% over 7 mkt. trading days? Big deal, some would say (sarcastically). But do the math:
1.9% over 7 mkt. days, on a continuous basis,
= 5.7% over 21 days (there are 21 trading days per month).
5.7% per month x 12 months = 68.4% annualized. Wow!
Now you realize the importance of +1.9% per every 7 days.
Is this doable on a continuous 7-day rollover basis? Highly unlikely, if not impossible (unless you're a real sharpie, and lucky!)
From the stock market peak on Oct. 9, 2007 thru the market low on March 9, 2009, the S&P lost 56%.
Ouch! During the entire year of 2011, the S&P lost -0.003% (excl. a 2% dividend).
Ouch!
So, to my main point of making 1.9% over 7 days -- during the Santa Claus Rally period -- is worth toasting. Pass the eggnog!
Gene
Note: The 7-day list of daily mkt. results (shown in an earlier msg. in this thread) is merely an exercise that stems from an original idea shown in the Stock Trader's Almanac. I didn't coin the idea; I'm just reporting this year's results. Anybody with a simple computer could have done the same study. I just wish some stock market sharpie, who is lucky, could show me how to really make 68.4% a year. Just for one year! <g>