Turnaround Tuesday Strategy

Ever noticed how markets sometimes fall on a Monday - then bounce back the following days?

That’s the essence of the Turnaround Tuesday Strategy: buying weakness on a Monday and then capturing a rebound the next day (or in the next few days).

Here are the trading rules:

• You look for a Monday where the close is meaningfully weaker (for example, at least 0.5 % lower than Friday’s close).

• You then buy at Monday’s close and exit at Friday’s close.

• We backtested the trading rules above – please see the images below (SPY from 1993 until today).

Why this matters

In a world of complex algorithms and relentless news flows, simple timing effects like this still show up. The beauty of a strategy like Turnaround Tuesday is:

• Short time in market = lower exposure to unexpected macro shocks.

• Clear rules (Monday weakness + exit on Friday) make it testable and systematic.

• The effect has some empirical support over decades (since 1982).

• It fits nicely into your toolbox of systematic trading: you can code the rules, backtest them, and integrate as a low-friction signal.

Important caveats

• It only works when the Monday is weak. If Monday is strong, the strategy struggles.

• Implementation matters: using the close price means you must be able to trade at or near close price (or adjust for slippage/commissions). The back-test assumed 0.03% commissions + slippage.