Black Friday sales are already popping up everywhere ahead of the busiest shopping season of the year. In an ironic twist, the historical data tells us that the retail index usually finds its seasonal top within days after Black Friday.
The reason is simple, investors usually “buy the rumor” of the seasonal surge in retail activity. Then the retail stocks usually start to see selling pressure as results from the Black Friday shopping event begin to trickle in. This is the “sell the news” part of the equation.
But every year, there are a few select stocks that continue their rally all the way through the New Year.
This post originally appeared at Money Morning.