(This is an excerpt from an article I originally published on Seeking Alpha on November 27, 2013. Click here to read the entire piece.)
Black Friday in the U.S. is the day after Thanksgiving when shoppers descend upon stores scrambling to find bargains for Christmas gifts. For some reason, the stock market also opens for business albeit for a shortened day of stock shopping. This day should not be significant for the stock market, but surprisingly it is. Last year, I wrote “Quantifying The Significance Of Black Friday Trading” including a few fascinating statistics on trading around Black Friday. There were three main lessons…{snip}
{snip}
(1950 – 2012)
Note that I have not studied what happens in years when the S&P 500 manages to close below the Black Friday close within the subsequent week. If it happens this year, I will dig deeper.
In the meantime, here are data on the maximum drawdowns by month of the year. {snip}
(January, 1950 to October, 2013)
Source for price data: Yahoo Finance
The last bearish signal I identified was on November 7th when the S&P 500 swooned briefly. {snip} I am now focused on Black Friday shopping…
Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on November 27, 2013. Click here to read the entire piece.)
Full disclosure: long SSO puts