Thanksgiving is a week away. But if you want to take advantage of one of the more successful trades of the last decade, you’ll have to act tomorrow.
Jonathan Krinsky, Miller Tabak’s Chief Technical Market Analyst, just sent around a trading note analysing S&P 500 movement around Thanksgiving during the last 10 years.
On average, he found, the S&P establishes a low near November 20 and rallies into December 10.
“Looking more specifically, we find that buying the close on the Friday prior to Thanksgiving, and holding for 3 weeks has provided very attractive returns over the last decade,” wrote Krinsky. “Since the 2002 Bear Market ended, this trade has been profitable every time, with an average gain of 2.80%. Since 1982, the average gain over this period of time is around 2%.”
Here’s a table of the returns for each year:
Photo: Miller Tabak
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