In this week's comments on investor sentiment, I alluded to the positive seasonality seen in the stock markets during the week of Thanksgiving. Here is some compelling data.
This is a very nice table from Trader's Narrative showing how the S&P500 has performed over the last 20 years during the Thanksgiving holiday week. My thanks to Babak for allowing me to share this with my readers.
Table 1. S&P500 Performance/ Thanksgiving Week
While the table covers only 20 years, the article presents some numbers going back to 1950. In essence, the data supports the notion of an upside bias to the week, and in particular, the trading days around the actual Thanksgiving holiday are very positive. Sellers are not out in force, and buyers will push a low volume market higher.
Unfortunately, the good holiday vibe is short lived as the week after Thanksgiving week tends to be a little less bullish.