The first two full weeks in March, before Triple Witching Friday, often are swing move up weeks.
Triple Witching is when the contracts for stock index futures, stock index options, and stock options all expire on the same day.
Triple Witching happens four times a year on the third Friday of March, June, September and December. It is also known as Freaky Friday.
With the expiration of options, institutional traders and hedge fund managers are eager to re-position themselves for the 2nd quarter.
Sectors that institutional traders often buy into in March are: Consumer Discretionary, Banking, Oil, Natural Gas, Tech, and Health Care.
The second half of March is usually weaker than the first half, with the last week in March being the weakest of all.
Going long Consumer Discretionary, Banking, Oil, Natural Gas, Tech, and Health Care, in March, and selling on May 1st unless the sector was in a strong uptrend, would have yielded the following results.
Between 2006 and 2011, this strategy worked best trading Oil, making a total gain of 97%.
The next best sector that this strategy worked for was High Tech making a total gain of 60%.
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