According to various sources, the pre-holiday effect is a real phenomenon. Markets tend to gain ground just before the holiday kicks in. Extensive research over the years indicates that can be as much as a tenfold increase in returns in the pre-holiday sessions of trading compared to regular trading sessions. In the run-up to Black Friday, Thanksgiving, and Christmas, stock prices tend to balloon, yet there is less liquidity in the stock markets since many people are away, or with family. There is a greater degree of optimism during the holiday period, so this bodes well for stock prices.