WASHINGTON, October 6, 2016 – Fall is in the air (and Hurricane Matthew may be on the way for some), so it must be time for the Columbus Day holiday weekend, the celebration of that happy day when Chris C. discovered America. Or not.
All of which means, for active traders, that U.S. and Canadian stock markets will be—open—Monday, October 10, (surprise). Yes, this is an unusual holiday in that banks, many governments (and the Feds) will have the day off, plenty of schools across the country will have the day off, but you won’t.
Markets opened predictably down Thursday as nervous investors are awaiting Friday’s official job numbers. Or not. Today and Friday may see plenty of pressure on stocks and bonds alike as traders try to exit risky positions in advance of the weekend. But they may be back Monday morning getting rid of positions they should have dumped on Friday. Or not.
If you’re noting a pattern here, it’s not your imagination. The Maven worried in Wednesday’s column that yesterday’s swell rally might very well get negated Thursday, and so far the market is trying to make this columnist look like a genius with the Dow down over 100 points early on but trying to recover a bit as we near the 10 a.m. hour EDT.
Here are the particulars of Monday holiday trading.
Monday, October 10, 2016 is not only the observance of Columbus Day. It’s a Federal government and bank holiday as well. But it’s not necessarily a holiday for you and me. That means that normal trading hours will be observed in the U.S. However, one caveat: Monday is not a settlement day. So if you sell some stock during a periodic panic late this week, you’ll have to wait an extra day for the proceeds to be available if you intend to withdraw them. “Regular way” settlement is 3 business days and Monday won’t count as a business day for settlements even though it is a trading day. Got that?
Differing from the U.S. significantly here, Monday happens to be Canada’s own Thanksgiving Day, a major holiday north of the border similar to ours but celebrated on a different day. So that makes Canada’s upcoming trading schedule a bit more complicated than it is for us.
- Friday, October 7, 2016: Due to Monday’s Canadian holiday, Good ‘Til Canceled (GTC) orders U.S. or Canadian traders placed on stocks via Canadian markets after Friday’s market close will route to Canadian exchanges on Tuesday, October 11. Exception: Friday after-hours orders for dually listed stocks—for example, stocks listed on both the NYSE and the Toronto Exchanges—will trade in the U.S. during U.S. market hours on Monday, October 10, 2016. Day orders for Canadian listed securities placed after COB on Friday will be canceled out at the end of the trading day on October 11, 2016 if they remain unexecuted.
- Monday, October 10, 2016: Canadian markets will be closed in observance of Canada’s Thanksgiving Day Holiday.
We’ll be back with another column later today (Thursday) if we need to be. Otherwise, we’ll pick up the pieces on Friday and snug things up as we await the potential arrival of what’s left of Hurricane Matthew. As of this writing, Bad Boy Matt is potentially scheduled to hit the mid-Atlantic coast, including DC, sometime late Saturday or early Sunday—all of which is possibly another reason markets are nervous today, as New Jersey and New York City could be next.