First trading days of months have a bullish reputation and
March is not an exception. Reviewing the last 25 years of data shows S&P
500 has the best record, advancing 68.0% of the time with an average gain of 0.36%.
NASDAQ is second best with an impressive 0.65% average gain. Both NASDAQ and DJIA
were up 64.0% of the time during the period. DJIA has been modestly softer with
an average advance of 0.27%.
March’s first trading day strength has not been limited to
just the last 25 years. Since 1950, DJIA has advanced 51 times in 75 years (68.0%)
with an average gain of 0.23%. S&P 500 was nearly as consistent, up 64.0%
of the time with an average gain of 0.25%. NASDAQ has also been a solid
performer since 1971, up 34 times in 54 years (63.0%) with a respectable 0.37%
average.
