Here’s one technical analysis pattern that I never read about in any stock book and I have never reveal to anyone yet. It is what I called the “stock performance by day of week”. I learn about this pattern a year ago when I was trading SOLF, a solar energy company. I was swing trading SOLF consistently and made little profit until one day I realize that the stock kept going up every Monday, and going down every Thursday. It kept doing that for like 3 weeks, so on the fourth week, I bought the stock near market close on Friday, and sold it near market close on Monday and gained about 3% in profit. I kept doing that for the next 8 weeks and here is the outcome.
Monday SOLF performance in the period of 11/09/2009 – 01/25/2010
Stock Date Percentage Gained
SOLF 2009-11-09 3.52%
SOLF 2009-11-16 4.65%
SOLF 2009-11-23 0.45%
SOLF 2009-11-30 3.44%
SOLF 2009-12-07 6.87%
SOLF 2009-12-14 6.29%
SOLF 2009-12-21 7.28%
SOLF 2009-12-28 4.47%
SOLF 2010-01-04 4.85%
SOLF 2010-01-11 3.37%
SOLF 2010-01-25 10.45%
SOLF 2010-02-01 3.88%
The pattern finally broke on 02/08/2010 when the stock went down 3.84% and I stopped trading this pattern for SOLF. However, I still monitor the stock in case I see the pattern again. So how much percentage I gained from this stock? You do the math. Let’s look at how SOLF performs on Thursdays during the same time period.
Stock Date Percentage Lost
SOLF 2009-11-12 -0.38
SOLF 2009-11-19 5.09
SOLF 2009-12-03 -1.29
SOLF 2009-12-10 -4.44
SOLF 2009-12-17 -2.59
SOLF 2009-12-24 -0.91
SOLF 2009-12-31 -1.55
SOLF 2010-01-07 -4.80
SOLF 2010-01-14 -5.20
SOLF 2010-01-21 -4.40
SOLF 2010-01-28 -2.16
