MBS Week Ahead: Action-Packed and Holiday-Shortened: Sometimes That's Enough

Past examples of Thanksgiving weeks vary when it comes to market behavior.  There's no major bias toward gains or losses and the volatility doesn't tend to inform the following week's trading.  If anything, Thanksgiving weeks have been slightly more likely than not to result in a quick dip or spike that is subsequently unwound in the following week.  All that to say that chances are higher that we'll see some sort of break, but history suggests it might not be too meaningful.

Wednesday handily outclasses Tuesday in terms of volatility potential, but neither of the remaining two days even come close.  During those two days alone, the volume of economic reports and other scheduled events is higher than some entire weeks.  The market closure pushes to Wednesday everything that would have happened on Thursday and some of what would have happened on Friday.

Markets are, of course, closed on Thursday for Thanksgiving and open for a half day on Friday (2pm Eastern).