Day: August 14, 2013
A trade setup for Independence Day Eve
Note:This post should not be considered as investment advice and is not a recommendation to buy or sell.
Seasonal anomalies is something that I have always been fascinated with.These anomalies are more obvious in the commodities market-For example, gold rises ahead of Dhanteras, sugar rises before Diwali, fruit prices go up during Ramazan etc
Do such anomalies exist in the stock markets?Some sectoral anomalies do exist-cement stocks are usually soft during the rainy season,PSU stocks get hammered in the runup to the elections etc.
What about specific stock-wise,day-wise anomalies?I believe they exist but on a probabilistic basis.Say they will work out 70% of the time but overall the expectation will be positive.
As an example,take today-Independence Day Eve.The data suggests that this day is good to go for the following market neutral strategy:long IGL and short HindPetro.
Will the trade work out?Will come to know by close of trading session today !
Today’s trade setup didn’t workout-IGL (-0.64%)/HindPetro (+1.05%) (Despite going ex-dividend)
This post is in continuation of my 5 Stocks Series (see here)
5 Stocks that have increased by more than 40% in the first half of August 2013 is listed below:
Symbol | Close on 31 July,2013 | Close on 13 Aug,2013 | Gain |
SPMLINFRA | 23.25 | 33.05 | 42.15% |
SUVEN | 23 | 32.95 | 43.26% |
VIVIMEDLAB | 101.1 | 149.2 | 47.58% |
DREDGECORP | 166.4 | 280.3 | 68.45% |
STCINDIA | 74.5 | 144.15 | 93.49% |
The $22 Billion tweet
This tweet by Carl Icahn increased Apple’s stock price by 5% or 22 Billion $
We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.
— Carl Icahn (@Carl_C_Icahn) August 13, 2013