CFDs – Gibraltar Asset Management

The Daylight Saving Anomaly

25th March 2011/in CFDs /by Mark Maloney

It may sound far stretched, but it is possible to make money from stock markets around the time of daylight changes. In the paper “Losing Sleep in the Market: The Daylight Saving Anomaly” by Kamstra, Kramer and Levi (2000), the stock market was found to produce larger falls the day after the daylight saving weekend than other weekends of the year. Their study found that between 1967 and 1998 in the US the mean negative return on the first trading day following spring daylight saving weekends (in March) is between 2 to 5 times greater than that following an ordinary weekend.
Stock market speculators would be wise not to sleep on this one. Sell the market short at close of business on the Friday (via selling a FTSE 100 CFD or Future at £10 a point) and be ready to close the position at an opportune time on the Monday.

GlaxoSmithKline

13th January 2011/in CFDs /by Mark Maloney

GlaxoSmithKline is a core defensive holding, a global pharmaceutical giant that is diversifying away
from blockbuster drugs into emerging market generics and consumer healthcare. The shares are
cheap and are supported by a high dividend yield.

For short-term traders, we are advising buying the stock via a CFD with a 1277p target price and setting a stop loss at 1195p.

Remember, trading is about probabilities, not certainties, so base the position size on the capital in your account. Do not risk more than 5% on each trade. By having a risk/return ratio of at least 2:1 we are targeting a profit that is substantially bigger than the potential loss meaning that over time you should win more than you lose.