Best Day of Week

Seasonality is a factor that can help us to establish advantageous times to enter trades. For example, if we know that Friday tends to be the weakest day of the week we might have a bias to buy on Friday.

Since the bottom in 2003, Friday has indeed been the weakest day of the week for SPY. The SPY has done much better during the first half of the week with Wednesday being the best day. While the average gains are not large enough to justify a trade by themselves, they are useful as an additional tool for trade timing. The figures for each day on a close-to-close basis are listed in the table below.