Holiday effects (or as they are also known calendar effects) are very well-known anomalies in trading. Around these dates, like the 4th of July or Thanksgiving, for example, the market tends to perform better over a short period of time. This can be for several reasons, such as low liquidity or lack of macro news….
The Valentine’s Day rally is an annual event in which stock prices tend to increase in anticipation of the romantic holiday. The rally has been studied extensively by investors and economists alike, with a variety of conclusions drawn from the data. Is there a Valentine’s Day Rally in stocks? Yes, the evidence seems to confirm…
St. Patrick’s Day is an important day for Catholics. Is the day just as green for stocks as for those celebrating? St. Patrick’s Day is one of the best days of the year for stocks, but that is thanks to the performance over the last 30 years. Let’s find out why we celebrate St. Patrick’s…
Friday the 13th has long been associated with bad luck, though the exact origin of the superstition is not known (to our knowledge). Those who grew up reading Donald Duck know the bad luck that happened on Friday the 13th. But is Friday the 13th an unlucky day? Backtests reveal that Friday the 13th has…
As the year is drawing to a close, you might have heard about an end-of-year stock market rally. Is this seasonality true, fiction, or myth? The end of year rally is no myth or fiction: research shows that stocks tend to rally and go up at the end of the year. We already know that the…
The US has two main political parties, with different ideologies and policy directions. It is expected that the party that controls the White House and Congress can have a huge impact on equities markets. But what has been the election day performance in the stock market? What has been the performance after election days? As…
One of the most important factors in becoming a good trader is to know when you should NOT trade. The art of when to do nothing and just sit on your hands is just as important as anything else. So, what are the worst days to trade stocks (when you should sit on your hands)?…
Most US taxpayers have a deadline on the 15th of April to file their tax returns. If the date is on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Does Tax Day signal any bullish or bearish trading signal? Does Tax Day affect the stock market? Let’s…
We have, in a previous article, determined that there is a positive holiday effect in stocks. This effect happens on the days before the holiday. But is there an opposite effect? Is there a post-holiday seasonal effect in the stock market? Yes, there are certain tradeable post-holiday seasonal effects in the stock market. We present…
In the United States, a presidential election is held every four years. Those presidential elections have been observed to affect many government sectors, including legislation, international relations, and even the stock market. This occurrence inspired the concept of 4-year presidential election cycles in the stock market. But what exactly are they? The presidential election cycle…
