...There is a long list of reasons why; Black Monday for instance, Monday October 19th, 1987. That Monday (October 19th) everything we knew on the previous Friday had changed that Monday morning. Since the market closes on every Friday, two (2) full days pass, plus Friday night and Monday up to market open at 9:30am in NY.
From pundit to soapbox, from morning TV to radio and bloggers, the stock world is a buzz with major media coverage of events, market recaps, expert opinions, debates, natural disasters, man-made disasters, politics, births and deaths, good news and bad news to name - a few relevant expectations - however, because the market is closed, most investors must wait until Monday morning to actually react or act to all the events that happened from the Friday close to the Monday morning market opening.
Whether it's to put on a trade or close one, the market opening is generally the first time to act, at least here in the US. In global markets outside the US, Monday comes earlier so on top of US news up to the opening bell, anything can happen anywhere in the world that could spark a sell off - our biggest worry.
I have learned to expect the unexpected and reflect that there have been many weekends that I didn't sleep very well. I once suggested that the market should be closed Mondays, but that would just exacerbate matters. Three-day weekends increase potential market hazards by 33% with the extra day added. Riding big positions can be incredibly dangerous and nerve racking, but at the end of the day, the market is based on risk versus reward, so some actually miss not trading on weekends and holidays. Somehow, I know where they're coming from.
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