Is the 55-day rule in play?

However, in 2013 and in 2016, the 55-day Rule was “in play,” but did not produce a crash. The sharp market selloff of August 2015 was “related” to the 55-day time period but did not line up exactly. For whatever it’s worth, the 55-day period has proven to be problematic in a big way two times in the past.

What is the three-day rule for stocks?

The three-day rule for stocks is one example. According to the rule, investors should wait three days before buying shares whose price has dropped significantly. Investors can often be rattled by news impacting the financial markets and, typically, reacting too quickly to news can cause more damage than waiting.

How long does a market top last?

The Flash Crash of 2010 and the “Tech Stock Massacre” of April 14, 2000, both occurred far closer than 55 days to the previous market top. In recent years, there have been only a few times where a market top has lasted for more than 55 days. Usually, by then, the market has recovered and is merrily on its way to new highs.

Should you buy stocks on a Monday or a Friday?

Nevertheless, if you’re planning on buying stocks, perhaps you’re better off doing it on a Monday than on any other day of the week, and potentially snapping up some bargains in the process. If Monday may be the best day of the week to buy stocks, then Friday may be the best day to sell stock—before prices dip on Monday.