The first day of the month has been phenomenal since the beginning of 2010.
It has been up 12 of 14 days with an average gain of 1.05%.
In fact, 15.7% of the S&P’s 18.3% gain since the beginning of 2010 has been on the first day of the month.
But the trade probably got a little too crowded. Every trader in the world seems to have positoned himself yesterday to get ahead of the first day of the month. This is certainly what accounted for yesterday’s 6-point afternoon rally in the S&P 500.
And it’s not working today….
Source: BeSpoke Investment Group