• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Don’t fight US stocks during the Thanksgiving week
Investing

Don’t fight US stocks during the Thanksgiving week

by November 25, 2022
by November 25, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Thanksgiving week is traditionally a short one for US equity markets. Thursday, the market is closed, and Friday, it opens for only half a regular day.

In other words, with most investors on holiday and banks closed, liquidity is simply not there for the market to make huge gyrations. This situation sets the perfect conditions for a stock market melt-up, and this year is no different.

US stocks have had a terrible year, but the bounce is nothing short of impressive. The rally from the lows is so powerful that one should not be surprised to see stocks reaching new all-time highs in December.

Dow Jones chart by TradingView

Pennant formation breaks higher during the Thanksgiving week

Take the Dow Jones index and how it has performed this week so far. A week before Thanksgiving, it consolidated in a tight pattern resembling a pennant formation.

Pennants are continuation patterns. The market eventually breaks in the same direction as the underlying trend.

The breakout came during the Thanksgiving week – unsurprising, considering Thanksgiving’s seasonality, as I mentioned here.

Can US stocks make a new all-time high?

The pennant formation on the Dow Jones daily chart suggests a new all-time high is in the cards. The measured move hints at another rally of about 3,000 points, which will bring the Dow Jones index to a new all-time high.

So what should happen for US stocks to rally in December? Two things come to my mind.

One is the upcoming inflation report. If inflation cooled even more in November, stocks should rally.

The second one is strongly related to the first one. If inflation cools, the Fed will slow down the pace of rate hikes, so stocks should rally some more.

All in all, shorting stocks during the Thanksgiving week is a risky bet. If the technical picture looks as bullish as it does now, than the safest place to be is on the long side.

The post Don’t fight US stocks during the Thanksgiving week appeared first on Invezz.

You Might Also Like
  • Straddle vs. Strangle Options Strategy
  • Lululemon stock is down 13% today: buy the dip?
  • Fed minutes indicate smaller rate hikes ahead: time to buy?
  • UK financial sector has given new targets to address diversity in executive positions
Share
0
FacebookTwitterPinterestWhatsapp

previous post
ConsenSys reveals it collects IP addresses of MetaMask users
next post
Top 3 monthly dividend stocks to boost your income stream

You may also like

SteadyOptions 2022 – Year In Review

January 16, 2023

Caterpillar stock price forecast: Bank of America sees a 15%...

January 15, 2023

Glencore share price dived amid ESG concerns: buy the dip?

January 5, 2023

Coinbase to lay off another 20% of its workforce

January 10, 2023

Call Option Payoff

April 14, 2023

How to play the Meta stock after a $725 million...

December 23, 2022

3Commas admits to API keys leak after anon reveals database

December 29, 2022

It’s time to move to the sidelines on Salesforce stock:...

January 11, 2023

Iron Condor Vs. Short Strangle

January 31, 2023

Peloton is on a path to penny stock status in...

December 28, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025
    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,764 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,450 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,430 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,307 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,105)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’...

      May 30, 2025
    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,105)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    The UK Plans to Do Away...

    November 30, 2022

    Helium One share price has a...

    December 27, 2022

    What made Designer Brands stock tank...

    December 1, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here