Thanks to historical events, movies and the media, Friday the 13th is supposed to be a day for bad things to happen. So is that why the market is going down today?
There’s not one shred of evidence that points to the mystical connotations with the date having anything to do with it. But, I ran the numbers to see if there was a historical pattern for the market being down on past Friday the 13ths.
Since 2006, there have been 10 days when the 13th fell on a Friday. February 13th, 2009, was the worst when the Dow dropped 1.04%. But, on Friday, June 13, 2008, the market had a pretty solid day with the Dow climbing 162 points or 1.34%. In total, there were five days when the market posted gains and five days when the market fell.
|January 13, 2006||-0.01%|
|April 13, 2007||0.48%|
|July 13, 2007||0.34%|
|June 13, 2008||1.34%|
|February 12, 2009||-1.04%|
|March 13, 2009||0.07%|
|November 13, 2009||0.71%|
|August 13, 2010||-0.17%|
|May 13, 2011||-0.79%|
|January 13, 2011||-0.38%|
The bottom line is that there’s no pattern here, there are no evil forces at work, and what we’re seeing is a normal trading pattern as we head into earnings season.
The indices had a stellar first quarter, and investors are simply digesting gains and making their moves for the upcoming earnings season. It’s as simple as that.
So, enjoy your Friday and use today’s trading action not as a bad sign, but an excellent buying opportunity to pick up stocks at attractive prices.
Until next time!