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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Souze who wrote (14727)	5/24/1999 8:49:00 PM
From: LastShadow	Read Replies (2) \| Respond to of 43080

Pre Holiday Effect: There are nine holidays for which the Exchanges have traditionally been closed. Historical research shows that stock prices behave in a significantly positive manner in each of the two trading days preceding a market closing. In general, purchasing equities on one of the two days preceding a holiday and selling just after has proven a profitable play. The most likely rationale for this effect is that short traders are lightening up their holdings prior to the three day holiday in order to avoid any unexpected good news. The following lists the average Pre-Holiday Seasonality record for the last 50 years, based on the S&P 500 Index. Holiday Day 1 Day 2 President's Day* -0.1% 12.2% Good Friday 7.3% 17.8% Memorial Day -4.7% 22.8% Independence Day 13.3% 37.3% Labor Day 16.8% 33.7% Election Day 17.9% 4.6% Thanksgiving 4.3% 1.1% Christmas -7.1% 15.2% New Year's 31.1% 19.6% *Note, Presidents Day data is comprised of the aggregate of both Washington and Lincoln's Birthday prior to 1998. Day 1 is two days before the holiday, Day 2 immediately precedes the Holiday. From the above data, it would say that generally this Thursday will be an up day, with Friday being down (i.e., a good buying opportunity). See, I told you guys I would eventually post all the holiday's in one post – so bookmark this or print it! lastshadow