Market Insider

Don't ignore what could be the jolly season for stocks

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Stocks had their best week of the year and the upswing could continue into Thanksgiving week, usually a good one for the market.

The finished Friday up 3.3 percent at 2,089, its best weekly performance since last December, after logging a 3.6 percent decline the previous week. The Dow rose 3.4 percent, its best week in six.

"People are confounded when the market sells off in August and September and rallies in October. Seasonal patterns tend to be very real and this year's proving no exception," said Julian Emanuel, equity and derivatives strategist at UBS.

"I think the market is comfortable with a resolution of uncertainty. Even if it has potentially negative implications, it's not always a bad thing. People are comfortable with the Fed going to hike in December, and moreover the market is trading this way as if that hike was going to act as an affirmative signal."