S&P 500 weakness could be a buying opportunity

Yahoo Finance’s Jared Blikre breaks down how stocks are moving, seasonality trends, and the moves in crude oil and the dollar.

Video Transcript

AKIKO FUJITA: Welcome back to Yahoo Finance Live. We are seeing red arrows across the board to kick off what is a shortened trading week ahead of the Thanksgiving holiday. The NASDAQ seeing the steepest losses so far. To break down the market action, we've got Yahoo Finance's Jared Blikre. Jared, a shortened week, but certainly a really busy one with retail back in focus with some earnings there.

JARED BLIKRE: Yes, definitely. And guess what? We've got some seasonal tailwinds because of the Thanksgiving week. Here is the S&P 500, down about half a percent today. But this weakness could be a buying opportunity. Just stay tuned for that. This is a look at the last three months. We have had liftoff since about mid-October there. And we are just a little bit off of the highs.

Now let me show you, this is Almanac Trader has pulled up over the last 20 years what is the S&P 500 do in November, along with all the other major indices. I understand a lot of squiggly lines here. This is one month. Those dotted lines are the current trajectory. And the solid lines are what happens over the last 20 years.

And you can see the main takeaway is usually a dip into about mid-November and then lift-off into the end of the month. And so the takeaway, says Mr. Hirsch, the best short-term trade appears to be getting long into any weakness in the week-- that might be today-- or days before the holiday and selling any subsequent rally towards the end of Thanksgiving week.

Also want to point out that crude oil is on the move today, but to the downside, crude oil hitting the lowest levels since the very first day of the year. And crude oil had the biggest down day of the year last Black Friday. So we could see some movement in the futures sector. The dollar is on the move to the upside. So lots going on this week. Don't count this week out for some big movements just because of the holiday, Akiko.