As expected the market moved higher today. The uptrend combined with the strong seasonal bias helped push it along. The Friday after Thanksgiving is also typically strong. The indices are a bit extended and in need of a pullback. (Need evidence? Consider the fact that the SPY has now closed higher 9 days in a row. This has only occurred once before – during September of 1995 when it had 12 consecutive higher closes.) Overall, not much has changed since Monday’s column. I am still expecting a pullback early next week. Any gap up or strong move higher Monday morning could be ideal for shorting into.

I’ve traded the Friday after Thanksgiving for several years, so let me tell you how it works. The market opens at 9:30. Trading takes place for about 20 minutes. After that, the bids and offers just sit there and stare at each other in a tryptophan induced daze. Occasionally, a big player will notice everyone else is asleep and try to move a stock to their advantage. At 1 pm the closing bell goes off, waking everyone up and sending them home. It’s a good day to trade very passively, since follow through on most anything will be poor.

Keeping it short today…enjoy your Thanksgiving,

Rob
Rob@HannaCapital.com

For those who may be looking to expand their knowledge beyond just market timing, my Hanna ETF Money Flow System utilizes the VIX in generating trading signals for spread trades.

Rob Hanna is the principal of a money management firm located in Massachusetts. He has spent the last several years developing and refining methods for trading in stocks across multiple time frames. He selects stocks using both fundamental and technical criteria, and then trades them using technical analysis techniques.