Valentine’s Day Rally In The Stock Market

Welcome to our video discussing the Valentine's Day Rally in the stock market! In this video, we will explore the academic research that suggests the markets show abnormal positive returns in the days leading up to February 14th.

We will backtest the trading rules and show you how you can make money while you make love! We confirm that there is a Valentine's Day Rally by going long in February when the calendar day is ten or higher, and selling at the close on February 14th or the first trading day later if the 14th is a non-trading day.

Based on these trading rules, we will show you the equity curve in S&P 500 since 1960, which shows an upward slope, and the average gain per trade is 0.35% for about three trading days. This is significantly higher than any random three-day period.

Furthermore, we backtested many markets and found that emerging markets have proved to perform the best during the last two decades. The emerging markets ETF (EEM) shows average gains of 1.4%.

The Valentine's Day rally is an annual event in which stock prices tend to increase in anticipation of the romantic holiday. The rally has been studied extensively by investors and economists alike, with a variety of conclusions drawn from the data.

Some believe that the rally is simply a result of investors buying in anticipation of a positive sentiment in the markets, while others suggest that there is a more fundamental impact of romance on stock prices.

The first evidence of the Valentine's Day rally dates back to the early 1900s, when the stock market experienced a surge in activity around February 14th. Since then, the rally has been a recurring phenomenon in the markets, with prices tending to rise in the days leading up to Valentine's Day.

However, there is still much debate surrounding the Valentine's Day rally and its potential impact on the markets. Some argue that it is simply a result of investors buying into the hype surrounding the holiday, while others believe there may be more fundamental reasons for the rally.

Watch until the end to learn more about the potential explanations for the Valentine's Day rally and its impact on the markets. Don't forget to like and subscribe for more seasonal patterns like this one!

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You can read more about it here:
https://www.quantifiedstrategies.com/valentines-day-rally

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