Thanksgiving and Black Friday holiday trading strategies
Can you trade the seasonality and make money in the stock market?
There is a lot of work involved in writing these articles. Most of my work is free but if you like what I do please consider supporting me.
Thanksgiving is always on the fourth Thursday in November and it began as a day of blessing for the harvest in the preceding year. The markets are closed on the day, and the next day (Friday) is only a half-day and markets close at 1 PM ET. The Friday after Thanksgiving has over the last couple of decades developed into a shopping bonanza and is called Black Friday.
The Thanksgiving and Black Friday effects are very strong in the stock market. We did multiple backtests from 1960 until October 2021 on the S&P 500, and it turns out the Thanksgiving effect is more reliable the closer we get to Thanksgiving.
Please click here to read about the Thanksgiving and Black Friday Effect.