Seasonal Trades in March

Looking for a negative day to establish a long position or even short the market? Witching Day is the third Friday of the month, and it has a track record of volatility and negative performance. This is the day that stock options and futures expire; however, it is the business day after, dubbed 'Witching Hangover' by Brooke Thackray and Bruce Lindsay, which has produced even bigger negative performance. Together they make a wicked pare.

From 1974 to 2007, Witching Hangover has been negative more than half of the time. Other than 2001, in the years when Witching Hangover has been positive, the year has performed above average.

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