Easter is a Christian holiday celebrated across the world. But does it affect trading on the U.S. stock exchanges and other financial markets? We look at how the stock market performs before and after the Easter holiday. Additionally, we specifically look at the performance of stocks the day before Good Friday – Holy Thursday. Easter…
The Labor Day holiday is one of the federal holidays observed in the US. But does it affect the US financial markets? The US financial markets do not open on the Labor Day holiday, which is the first Monday in September. No trading takes place on any of the U.S. stock exchanges. Backtests conclude that…
The 4th of July (Independence Day) is one of the federal holidays in the US. How does it affect the US financial markets? The US financial markets do not open on the 4th of July, being a federal holiday to mark US independence. No trading takes place on any of the U.S. stock exchanges and…
The Memorial Day holiday is one of the federal holidays in the US. How does it affect trading in the US financial markets? The US financial markets do not open on Memorial Day because it is a federal holiday. Trading does not take place on any of the U.S. stock exchanges on that day, and…
Quad witching (quadruple witching) refers to the expiry of four financial derivative contracts on the same day: stock index futures, stock index options, single stock options, and single stock futures (the latter have low volumes and are most likely not a big factor). Our backtests indicate that the quadruple witching week shows strong returns, but…
Yes, our backtests indicate that there is an end of month effect in Bitcoin and this can potentially be a viable turn of the month trading strategy. The end of month effect, sometimes referred to as the turn of the month effect, is well known in US stocks and most other stock indices all over…
The Euro Bund futures contract shows weak seasonal performance during the futures expiration week. The contract has ticker code FGBL, is issued by Germany, has a maturity between 8.5 and 10.5 years, and one contract has a value of 100 000 EUR. It’s a heavily traded futures contract that expires four times per year: on…
Trading Strategies for Futures Expiration Week. Our backtests indicate that both DAX 40 and Euro Stoxx 50 have much better performance during the futures expiration week compared to any other random week. Let’s start with the DAX 40 contract: DAX 40 futures contracts expire four times per year: the third Friday of March, June, September,…
The Euro Stoxx 50 has mixed performance the week after futures expiration. Euro Stoxx 50 is a very popular trading vehicle. It’s one of the most traded futures contracts in the world. The contracts expire on the third Friday of the last month of each quarter: March, June. September, and December. If you are not…
The Euro Bund (FGBL) shows significant positive performance following the expiration of the previous future contract. The Euro Bund (FGBL) is a bond contract with a maturity of 8.5 to 10.5 years. It’s issued by Germany and one contract has a value of 100 000 EUR. EuroBund is a popular trading vehicle and is heavily…
