Happy Thanksgiving, everyone!
I hope you’re having a relaxing day full of turkey, stuffing (or whatever you like to eat…), parades, and football.
As much as I love trading, I do enjoy having a day off from it now and then.
Many traders take off the Friday after Thanksgiving… and that’s fine.
But not me! I’ll be ready for more action tomorrow…
I don’t want to miss out on some of the unique opportunities that tend to emerge during this holiday week.
For traders, especially those in the small-cap and momentum niches, understanding the dynamics of this short holiday week can give you an edge.
Table of Contents
Why Thanksgiving Week Can Be Good For Traders
First off, let’s talk about the structure of the week…
Thanksgiving falls on a Thursday, and U.S. markets are closed that day.
Friday is a short trading session, with the markets closing at 1 PM EST. This schedule changes things in a few ways…
Low Volume:
Many of the institutional traders and bigger players take time off this week. As a result, trading volume tends to drop significantly.
Low volume often leads to greater volatility, especially in low-float stocks. With fewer players in the market, it’s easier for low floaters to spike hard.
Higher volatility might scare some traders away, but for those who know how to play it, it’s a golden opportunity.
Holiday Sentiment:
The holiday season often brings a wave of optimism and enthusiasm. Call it the “holiday cheer effect.”
News tends to move markets more dramatically, and traders often look for “feel-good” plays tied to seasonal themes—think retail stocks benefitting from holiday shopping, travel, or even certain food companies.
Black Friday Hype:
Retail stocks can really see some movement during Thanksgiving week, as the market anticipates Black Friday and Cyber Monday sales.
Watch for big names like Amazon.com Inc. (NASDAQ: AMZN) or Walmart Inc. (NYSE: WMT) but don’t forget the smaller retail players.
A well-timed catalyst—like a sales forecast upgrade—can send these stocks flying.
History Shows the Market Likes Thanksgiving Week
From 1928, the S&P 500 has ended Thanksgiving weeks in the black six out of 10 times with an average return of 0.28%.
And Thanksgiving weeks during presidential election years finish even better…
The S&P has been positive 75% of the time on an average return of 0.88%.
What to Watch For
Low-Float Runners
With low volume and fewer eyes on the market, it’s easier for low-float stocks to make big moves.
Look for stocks with news catalysts—earnings, contracts, or even fluff PRs can be enough to send a stock soaring.
Exactly as I told my Premarket Prep viewers yesterday morning, “Almost every Wednesday before Thanksgiving, there’s been an absolutely insane low float runner.”
And this year was no different…
VCI Global Ltd (NASDAQ: VCIG), with a float of around 1.2 million shares, dropped news this morning and returned almost 197%* after hitting our Oracle algorithm signal price.
VCIG 2-Day, 1-Minute Candles Chart; SteadyTrade
And don’t worry, it’s not over after yesterday…
So set your screeners to focus on:
- Stocks under $10
- Float under 10 million shares
- Significant premarket volume
- News or earnings within the last 24 hours
Remember, though, these moves can be fast and volatile. Be ready to adapt quickly.
The first step to catching these Thanksgiving low-float runners is to have a trading platform with a stock screener (set with the above parameters), technical indicators, charting, and more.
My top pick is StocksToTrade, and I use it every single day.
It has everything traders like me look for in a platform. It also has a selection of add-on alert services, so you can stay ahead of the curve.
Grab your 14-day StocksToTrade trial today — it’s only $7!
Seasonal Catalysts:
Think about stocks that tie directly to the holiday season. Here are a few sectors that typically do well:
- Retail: Watch for news about sales trends, inventory, or foot traffic projections.
- Travel: Airlines, car rentals, and hotel stocks may move based on holiday travel demand.
- Consumer Goods: Anything tied to holiday feasts or festivities (yes, even turkey suppliers) can pop.
Short Squeezes:
Low volume and holiday distractions can create the perfect setup for a short squeeze.
Traders who short small-cap stocks often get lazy or overconfident during slower periods, making them vulnerable to sharp upward moves.
A Few Tips for Thanksgiving Week
Focus on Quality Over Quantity:
Look for A+ setups and stick to your plan. It’s better to sit on the sidelines than to chase subpar plays in a thinly traded market.
Prepare Early:
If you’re serious about trading this week, start early. Check your scanners, set your alerts, and be ready when the market opens.
Manage Risk:
Low-volume markets can be unpredictable. Keep your position sizes smaller than usual, and always have a stop-loss in place before you enter a trade.
My Final Thoughts…
With lower volume, increased volatility, and seasonal themes in play, Thanksgiving week offers some great opportunities for prepared traders.
Keep your eyes on the charts and focus on high-quality setups.
And most importantly…happy Thanksgiving, and happy trading!
If you’re looking for more trading mentorship as well as stock ideas, subscribe to my StocksToTrade Advisory service.
Every STT Advisory member gets a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
Have a great Thanksgiving, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade