The Stock Exchange and Holiday Schedule
Some investors and traders believe that there is a relationship between the stock exchange and holiday schedule In other words, various times of the year can be more beneficial--or less beneficial--for trading.
Traders have even come up with several stock exchange and holiday sayings to help them remember these trading periods and the effects it can have on profit-taking.
For instance, one stock exchange and holiday schedule sayings is: "Sell in May and Go Away." This usually occurs after the Memorial Day holiday when markets are closed. Traders suggest that as people go on summer vacations--especially big shot investment firm bosses--there's less money circulating in the market. These traders recommend taking profits off the table and wait until money returns, usually in September and October.
Another popular correlation between the stock exchange and holiday schedule occurs during Christmas. Traders and investors normally expect a "Santa Claus" bounce. As optimism and good feelings fill the market during the holidays, these traders expect positions to increase during the Christmas holiday and into the new year.
In fact, superstitious traders are always wary of the relationship between the stock exchange and holiday schedule. (A chart of U.S. stock exchange and holiday schedule for the U.S. is listed below.)
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