$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.
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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