Positive trading patterns often emerge this time of year. Does that mean a rebound could be around the corner?
TRADE #1: TRADING THANKSGIVING WEEK
LAST 5 DOWN WEDNESDAYS BEFORE THANKSGIVING
Wednesday Before Friday After
2001 Dow -67 Pts. Dow +125 Pts.
2000 Dow -95 Pts. Dow +71 Pts.
1997 Dow -14 Pts. Dow +28 Pts.
1996 Dow -29 Pts. Dow +22 Pts.
1994 Dow - 3 Pts. Dow +33 Pts.
Source: Stock Trader's Almanac
None of the traders subscribe to the theory. It’s a crock, says Pete Najarian.
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TRADE #2: IT'S THE MOST WONDERFUL TIME OF THE YEAR
S&P 500 AVG. MONTHLY SINCE 1950
JAN +1.4%
FEB -0.1%
MAR +1.0%
APR +1.3%
MAY +0.2%
JUN +0.2%
JUL +0.9%
AUG UNCH
SEP -0.6%
OCT +0.9%
NOV +1.8%
DEC +1.7%
Source: Stock Trader's Almanac
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TRADE #3 TAX LOSS SELLING
- Investors Often Sell Losers Near Year-End For Tax Purposes
- Stocks Selling at Their Lows on Dec. 15, Usually Outperform Market Through Feb. 15
- Notable Stocks at 52-Week Lows Right Now: Citibank (C), Pfizer (PFE), Merck (MER), JC Penney (JCP), Captial One Financial (COF), Advanced Micro Devices (AMD), AIG (AIG)
Source: Stock Trader's Almanac
All the traders agree with the theory… but counsel investors to choose picks wisely.
