13% and setting another record high this year, it could be tempting to chase any seasonal bounce in the market. The week of Thanksgiving could provide the opportunity to do just that. It has ranked among the best weeks of the year for the S&P 500 for the past 70 years. Since the holiday was officially recognized in 1941, the S&P has averaged a 0.49% gain for the week, with positive moves 64% of the time, according to Bespoke Investment Group research. As a comparison, since 1941 the average one-week return for the S&P is 0.16%, and positive 56% of the time.
The Stock Traders Almanac recognizes these moves and lays out an easy way to trade the Thanksgiving market for those looking to offset that expensive turkey dinner. “What we’ve seen over the years is that the Wednesday before (Thanksgiving) and the Friday after have been bullish days,” says Jeff Hirsch, Editor-in-Chief of the Stock Traders Almanac. “This is a short-term trading strategy.”
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Related ETFs: SPDR S&P 500 (NYSEArca:SPY), SPDR Dow Jones Industrial Average (NYSEArca:DIA), PowerShares QQQ Trust (Nasdaq:QQQ)