Tax Day Trading System & Strategy is the tendency for the US stock market to go up on the day after tax day.
This edge was written about by Stephen Moffit who showed that if you had bought S&P 500 futures on the close of the tax day and exited the trade on the close one day later, you would have made an average gain per trade of 0.5% since 1980.
The explanation for this stock market anomaly is that many people wait until the very last minute to pay their taxes and there is then a simultaneous rush to get their money into an IRA on the final day. Brokers then end up overwhelmed and lodge a number of the trades on the next day open.
Tax Day Trading System & Strategy:
You can go long S&P 500 futures on the close of tax day and hold for ONE full trading day.