August Option Expiration Day: DJIA & S&P 500 Down 7 of Last 9

Charts, Commentary, News, Stocks

This week is options expiration week and mid-August is usually better performing than the beginning and the end of the month. This strength is punctuated with a three-day string of bullish days running from Thursday August 15 until August 19. A bullish day is defined as a trading day in which the S&P 500 has risen greater than or equal to 60% of the time over the past 21 years. Unfortunately, this bullish cluster has not always resulted in full-week gains during option expiration nor does this daily bullish streak guarantee market gains on each day. DJIA and S&P 500 have declined on August option expiration day seven times in the last nine years and have suffered full-week losses in six of the last nine August expiration weeks.

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Jeffrey A. Hirsch is Editor in Chief of the Stock Trader’s Almanac. His latest book "The Little Book of Stock Market Cycles" (Wiley) was published in August 2012. As a frequent participant in the MrTopStep IM-Pro Trading Room, he shares trading insights with our other professional traders and new traders eager to experience the power of collective intelligence. Join us today and get the edge only social trading can give you.


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