Holiday Weakness

Next week could be a rough one for blue chips--if recent history holds up. The four-day week after the Memorial Day holiday had traditionally been bullish for stocks until the last few years. The Dow Jones industrial average gained ground during the shortened week every year from 1984 through 1995, but has slipped each of the last three years, according to the 1999 Stock Trader’s Almanac, published by the Hirsch Organization. The week’s closes for the 30-stock index and its percentage change during the week:

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Year Week’s Dow close % change during week 1984 1,124.35 +1.6% 1985 1,315.41 +1.0 1986 1,876.71 +2.9 1987 2,291.57 +2.2 1988 2,081.30 +5.8 1989 2,517.83 +1.0 1990 2,900.97 +2.8 1991 3,027.50 +3.9 1992 3,396.88 +0.3 1993 3,545.14 +0.5 1994 3,772.22 +0.5 1995 4,444.39 +1.7 1996 5,643.18 -2.1 1997 7,331.04 -0.2 1998 8,899.95 -2.4

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Source: Stock Trader’s Almanac