When to buy

The market is analyzed such that traders everywhere are asking this kind of question: How does the market perform after a massive snowstorm?

 

Over the two trading days following these historic storms, the S&P 500 ($SPY) averaged a gain of 1.24%, while the Nasdaq ($QQQ) gained an average of 1.60%. Strikingly—but perhaps not surprisingly—traders pursued the old “shovel play” in the days following these storms (second in fame only to the umbrellas-in-the-rain strategy), buying up large shovel-maker Caterpillar ($CAT) to an average gain of 2.33%, with a positive return 100% of the time.

So what should one do with this data? Buy into a storm heavy equipment manufactures and other weather related companies, and sell after the event. If one reads the news today, you’ll be buying from parties who have read the weather report before hand.

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