c10 JWBT016-Busby October 9, 2008 11:3 Printer: TBD
118 STRATEGIES TO WIN
bears emerge from their caves, the bulls will be grazing at grandmother’s
house. That means that I usually enjoy a slow-trending market that
pays me.PEARL 16
Thanksgiving Day tends to have one of largest percentage up days of the year.Throughout the year, there are certain holidays that seem to have
significance for the markets. Some of these include Tax Day (April 15),
Memorial Day, July 4th, Labor Day, Thanksgiving, and Christmas. Often, as
the new year begins, there is enthusiasm and an attempt to move prices
higher. If the bulls succeed, the upward trend may continue for a cou-
ple of months. In April, the taxman comes calling, and there is often a
trend reversal. Having to write those checks to Uncle Sam deflates the
spirits and the pocketbooks of many investors. Memorial Day is another
big holiday of significance. The Memorial Day weekend marks the official
start of the summer holidays. As the temperature rises around the United
States, volume is light, the markets are dull, and trading is difficult. Dur-
ing much of this time, the only play that will pay is selling on strength
and buying on weakness. With thin volume, there may be a trend reversal.
July 4th may usher in a bit of excitement, but other than that, the sum-
mer doldrums will probably continue until Labor Day. Labor Day marks
the official end of summer vacation, and traders get back to work. Ini-
tially, prices may bump up. However, historically, following Labor Day, the
market weakens until the Thanksgiving turkey starts strutting again on the
horizon.PEARL 17
The week of December 26 through January 1 is the best trading week of the
year.To maximize profit-making opportunities, learn about seasonal mar-
kets. Check trading hours by visiting the CME web site or other relevant
exchange sites. Having that knowledge will allow you to take advantage of
general trends. Obviously, the same trends and patterns do not always de-
velop. However, they often do, and anticipating them can be profitable.
For the holiday schedules for 2008, go to http://www.cme.com and view the
calendar.