The Day after Thanksgiving

Traditionally, the day after Thanksgiving is an "up day" for the Dow Jones Industrial Average.

The Dow has been having quite a run over the past year, and I don't doubt that the Dow will continue to have a good run.

Should you attach any significance to a higher close on the day after Thanksgiving?

No. Except that when the Dow fails to follow a tradition it should be considered as a red flag -- and a warning sign -- but not a signal of doom.

Stocks usually rise on the day after Thanksgiving because of the "good feeling" of the holidays and because it is a short day for trading. There usually isn't any "bad news" that is released over the holiday period.

Also, many traders look at the day after Thanksgiving as the first day of the year end rally or a Santa Claus rally.