Why March is so crucial for the EGX 30?

The EGX 30 is taking on quite a streak, hasn't been broken since 2007!
By Markets Chimp

2/27/18 1:06 AM

Winning streaks are awesome! They provide happy times for market participants and help support prosperous bull markets. However, as the streak ages, the possibility of a demise becomes stronger. The above chart shows monthly closes for the EGX 30 since 1998 until now, in which our analysis captures very interesting facts: 

1. Since inception, EGX 30 had the longest streak of monthly gains, a record of 14 consecutive months closing in green in the period from June 2004 to July 2005. 
2. EGX 30 then managed to go on for another four winning streaks, all of which lasted for only six months of consecutive gains:

a. The first lasted from February 2007 through July 2007.
b. The second lasted from July 2010 through December 2010.
c. The third lasted from September 2013 through February 2014.
d. The last one, still in progress, is continuing from September 2017 through February 2018.

 If we counted February 2018 (which is almost over) in the green territory, it will have completed a 6-month streak, giving the index a chance in March to break a record that hasn't been broken since 2007. This could mark a 7-month streak for the first time ever! 

That said, the market – statistically – may run out of fuel before breaking this relentless six-month record. Hence, market participants should be wary if they want to remain in the market for another month at such a critical phase because as streaks age, the possibility of a demise becomes naturally stronger.


Load More