WEEKLY STOCK CYCLE

Ever notice that, generally, the stock market number rises on Monday and falls on Friday? The various stock sellers and their media explainers vend many different interpretations as to why this occurs, but never as an overview. Instead, they explain each up or down as an individual, specific, daily event. Usually they explain it in terms of that day's business rumor or a bit of data revealed yesterday. They see a result, which is the stock market number having gone up or down, then they sift through recent history until they find a tidbit that seems to fit what has occurred. Then they announce that this item that they picked is the most probable cause of the bump or dip that they sought to explain. This financial news strategy is one of the many methods used to hype the stock selling business and serves to convince the small, work-a-day investor that their broadcast is the most wise and honest.

The facts are no more complex than the speculations of the financial news experts, yet more interesting than simply accepting their research. The actual cause of the Monday/Friday weekly stock cycle is the stock brokers' superior information on what hordes of investors want to buy. My first-hand knowledge of this came from my answering an ad for brokers from E.F. Hutton in Albuquerque. On Friday, the brokers all drive away to enjoy their fat commissions, leaving their broker trainees to clean up the mess. The weekend is when small investors do their serious work of determining what they wish to do with their investments. Some call in their orders for Monday. The large, institutional investors, such as the managers of hedge-, pension- and mutual-funds, etc, usually have enough workers to get their orders in by friday night. While they sit tight and nervously watch the world's markets for opportunities or emergencies, we grunts add up the numbers, spot the trends, then plot a course for our brokers to navigate that will result in maximum commissions off trades, and maximum profits on our various holdings within the corporation. Though this sounds very complicated and involved, it all boils down to, mostly, one simple tactic; we insert ourselves as middlemen between buyer and seller. We are the first ones to see what our customers want to buy. We go buy it ourselves, raise the price, then sell it to them. We see what everyone wishes to sell, we let the price fall, then we might find someone else who wishes to buy it, taking our commission each time, somtimes twice, if we can manage ti. The stock market number rises on Monday, much more often than not, as a direct result of our "taking a position" in the stocks we need to buy that we will be selling to our clients later in the day or week. Our doing so makes the price rise, but this cost, and more, is passed on to the investor and does not much affect us.

On Friday, the stock numbers fall because this is when we get rid of the stuff that we could not sell during the week. We bought a little too much of everything, just to make sure that we had plenty to sell, and now the trend we saw is sated. We sell off the excess Friday because we do not want to be caught owning stocks over the weekend when anything can happen to make it crash to a total loss. We are brokers. We want only to make gobs of cash by doing nothing more than snatching a bite out of everything that passes through our hands.             We could be replaced by a simple computer software program. But then, if this happened, who would spot the trends, corner the markets, suck out the profits, exploit the spikes, provide the rumors that cause the gyrations that let t the megamoney pools and brokers get richer off the wage slaves just trying to obtain a retirement income? The small investor? Naw! He does not have the knowledge, information, split second timing, credit or vast pools of money sloshing around the globe looking for interest payments to do this. He's the basis of of the financial machine, but we have all the advantage. It is like the mice investing in the cheetahs. The best a small investor can do is study the forces whizzing by over his burrow and occasionally try to see over the horizon. The growth of your investments will never be as great or as fast as those of the fat cats or the parasites, but you can learn how to minimize their theft of your wealth and grow your money by an average of eight to ten percent per year, in general. This is enough to keep it from shrinking to nothing due to inflation.