Do different weekdays Influence the way stocks are traded?

Question

Hi all,

I was wondering: do different weekdays have an influence over the way stocks are traded?
What I mean is: is there a kind of pattern in trading concerning different days of the week? An example would be that not much change takes place on Fridays or that Mondays are very 'stormy' days concerning stock trading.

I thenk you for any idea!

Answer 1

What I've heard most often is that amateurs open the week and professionals close the week, just like each trading day, but outside of that, I haven't heard toooooo much.

The reason is most amateurs look at their portfolios at night and put their orders in overnight and over the weekend. While the professionals see how the day is going and decide where to take the market to close the day and week.

However, lately, when there's been a Fed meeting, sometimes Monday can be more tentative until Bernie speaks, then all bets were off. Now that he's finally getting some of his communication down, it's not as bad anymore. lol

Answer 2

There used to be a serious "Monday effect" -- stock returns were consistently negative on Mondays (between 1962 and 1970, stocks went down 0.16% on the average Monday). The size of this effect, however, has been gradually diminishing since 1970s...