The Monday gap up day pattern has been so well ingrained in traders that I believe that the last hour rally was due to traders front running Mutual Fund Monday. The idea is asinine considering the poor inflows into equity funds. I even heard about Mutual Fund Monday from Fast Money. When you hear it on Fast Money, its too well known and the market will do its thing to discipline them. Unless we get some miracle bailout out of Europe this weekend, I expect a gap down.
Friday, February 5, 2010
No Mutual Fund Monday
The Monday gap up day pattern has been so well ingrained in traders that I believe that the last hour rally was due to traders front running Mutual Fund Monday. The idea is asinine considering the poor inflows into equity funds. I even heard about Mutual Fund Monday from Fast Money. When you hear it on Fast Money, its too well known and the market will do its thing to discipline them. Unless we get some miracle bailout out of Europe this weekend, I expect a gap down.
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3 comments:
mfm? I thought they ran it up because the mkt went down 9% and they need to put the bears in check.
I don't know who Mike Vadon is and his accuracy, but he says the bottom is in.
http://mikevadon.blogspot.com/
You guys should be prepared for anything. Good luck everyone!
Nice Blog thanks for sharing this information. :)
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