$SPY gap ups on first trading day of the month bullish or bearish ?

$SPY Gap Up Openings on First Trading of the Month

with $SPY (SPDR S&P 500 ETF) set to open with a gap up of about 0.26% ( at the time of writing) , here is a $SPY first trading day of the month trading system that might come handy for bulls

here are the trading system rules we employed

  • today is the first trading day of the month and
  • $SPY opens with a gap up ( i.c Open > previous day’s close)
  • go long at open &
  • exit at close of the current trading session

below the backtest performance summary of  “$SPY opens with a gap up on the first trading day of the month, Trading System” since 2000.

$SPY opens with a gap up on first trading day of the month trading system, backtest since 2000

Considering the fact that , excluding first trading day of the month $SPY after a gap up opening , on an average looses about -0.03% from open to close since 2000 , with only 50% ( vs 64% for the first trading day $SPY gap up opening  trading system ) times gaining from open to close . That is a bullish pattern indeed to go long on $SPY after a gap up opening on the first trading day of the month.

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