Here’s a good chart from Goldman Sachs showing daily seasonal variations in April. It’s a hot month, but the days leading up to and including the U.S. tax filing deadline, April 15, are slow.
“Tax Day is a seasonally weak period on the daily chart, but April remains a fairly strong seasonal month. Liquidity is drying up and demand for YOLO call options is decreasing,” Goldman writes.
I don’t think people wait until tax day to sell stocks, but writing a check to the government and filing taxes doesn’t put anyone in a good mood.
The takeaway here is that the situation improves considerably on April 16, next Tuesday, with an average gain of 1% for the rest of the week.
h/t @newsquawk
This article was written by Adam Button at www.forexlive.com.
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