In 6 Of 10 Countries A Single Day Outperforms The Entire Week!

In the Seasonal Insights issue of 13 February 2019, I presented a study illustrating the power of intraweek effects. The article was entitled “S&P 500 Index: A Single Day Beats the Entire Week!

The result of the study: if one had been invested exclusively during a single day of the week since 2000  – namely on Tuesday – one would have outperformed a buy and hold strategy, beating the broad market.

Moreover, one would have achieved opportunity gains, as it would have been possible to invest in other profitable assets over the remaining 80% of the time.

But what is the situation on the global level? Perhaps there are intraweek profit opportunities in international markets as well.

Putting the 10 Largest Countries to the Intraweek Test

Today I want to examine whether intraweek effects can be detected in the stock markets of other countries as well, and what they actually look like.

For this purpose, I have used the benchmark stock indexes of the ten largest countries in terms of market capitalization from the year 2000 onward.

The charts below show the average weekly patterns of the stock markets of all ten countries. The annualized performance of the stock markets of the respective countries since the turn of the millennium is depicted in black and that of individual days of the week in blue.

Daily changes are measured from close to close; thus the performance of e.g. Tuesday is the average return delivered from the close of trading on Monday until Tuesday's close. 

Canada: performance by days of the week, 2000 until 2/2019

Only two days of the week delivered a significant positive return.

France: performance by days of the week, 2000 until 2/2019

Three days of the week outperform the overall market by themselves!

Germany: performance by days of the week, 2000 until 2/2019

All days of the week except Wednesday exhibit a positive performance.

Hong Kong: performance by days of the week, 2000 until 2/2019

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Apart from intraweek effects, there are many more effects based on the calendar, such as e.g. annual seasonality, which one can analyze quickly at  more

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