Archive Category: Wednesday Windfalls Alerts

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Major U.S. stocks index are down so far today. The S&P 500 Index is off by about 0.6% while the Nasdaq 100 has shed 1%. That’s interesting because when I look at the number of declining stocks versus advancing stocks on the NYSE today, they are evenly matched, one-for-one. That means there are just as many stocks up on the day as there are stocks that are down. Looking more closely, the indexes are being dragged lower because of their disproportionately large weighting on the largest “mega-cap” stocks, which are particularly weak today.

Running a long-only strategy … whether it be the long-term, buy-and hold type, or the short-term, probabilities-based type as we do here …  has its pros and cons. One of the benefits is that you position yourself to take advantage of the equity market’s bullish bias. Long-term investors know “stocks go up over the long run.” And here at Wednesday Windfalls, we know that historically, on average, the two-day period between Monday afternoon and Wednesday afternoon delivers a statistically-significant bullish bias. But of course, that doesn’t mean that we can expect to see strength in all stock prices every week over those 48 hours.