6/28 Caution - Window Dressing...

[Don Bright]

Some of you may not be aware that this will be a major day for "window dressing' by fund managers, banks, mutuals, etc.

This is the last day of the Month, the Quarter, the Half,and the fiscal year end for many Gov't agencies.

There tends to be buying of "good" or "good performing" stocks, and a selling of the "dogs".....

Let's see what happens....be careful of a possible reversal of direction on Monday AM.

Don

 

[chs245]

Be careful off small cap stocks today: Russel rebalancing takes effect at the close of today. last 2 hours will be wild in some names.

 

[Lightningsmurf]

Any other days I should know about?

 

[Gordon Gekko]

Originally posted by Don Bright
Let's see what happens....be careful of a possible reversal of direction on Monday AM.

Don

just curious why you think there may be a possible reversal on monday? i'm not doubting you, i just don't know much about these "window dressing" days.

thanks

 

[rs7]

Originally posted by Lightningsmurf
Any other days I should know about?

If it's not one thing, it's another- Rosanne Rosanna Danna

 

[xtrader]

The mkt is being bought up because the first week of July tends to be a very strong "forward" indicator of the 2nd half of the year.

Since, we had a June selloff. The buyers are stepping in early to take advantage of any possibility of bullish bias.

I don't necessarily feel Monday is a short, unless there is a tremendous markup or some other circumstance.

Its dangerous to make assumptions based on incorrect reasoning.

 

[bungrider]

Cool - thx for the tips about today - the market definitely had that "circus of morons" kinda feel to it this morning....

My pet peeve is momentum traders - the morons who just buy buy buy BUY BUY BUY if the futures should move up one tick. This morning totally had that feel and now I know why - all of the mutual fund clowns jumping in screaming BUY BUY BUY. I guess the mutuals and mom traders are of the same blood.

I'm taking the day OFF! Better to not be around when these morons are all leapfrogging each other...

 

[Don Bright]

First off the window dressing is a well known "fact" of the markets. And if you notice, I didn't say which way the market will go, simply that stronger stocks in the quarter may be purchased by fund managers. The same managers will get rid of the underperformers....so this may be a directionless day. Since the same managers may want to get back into their stocks in July, the strong possiblity for a minor reversal on Monday exists.

Other dates to look for are the obvious "seasonality" days each month (check your Traders Almanac). These month end, early month movements are pretty well documented.

Let's see how the day progresses!!

Don

 

[Don Bright]

Originally posted by xtrader
The mkt is being bought up because the first week of July tends to be a very strong "forward" indicator of the 2nd half of the year.

Since, we had a June selloff. The buyers are stepping in early to take advantage of any possibility of bullish bias.

I don't necessarily feel Monday is a short, unless there is a tremendous markup or some other circumstance.

Its dangerous to make assumptions based on incorrect reasoning.

Actually, I didn't say anything about a selloff on Monday...I said it may reverse what happens today, and today isn't over yet.

I agree with your comment about incorrect reasoning, and that is why I try to get the good people on ET past all the nonsense out there, and stick to reality....sort of the reasoning behind the fluff.

Don

 

[dotslashfuture]

Window dressing is definitely a real occurrance. You can also add in the fact of new cash being automatically added to pension funds at either a monthly or quarter end basis, and we have both happening at the same time. I strongly suspect that it all doesn't happen on one day but over several days.