Santa Claus Rally Says What?
Traditionally, the Santa Claus rally is a normal seasonal that occurs at the end of the year.
But StockTradersAlmanac.com more precisely calls it the last 5 days in Decembeer and the first two days in January. The first two days in every month are a normal bull seasonal so adding those two days helps their estimate of the Santa Claus Rally.
The last days of the year were not bullish but adding the two January days turned StockTradersAlmanac’s version to bullish.
So what happens when Santa Clause visits?
Fedruary is not great with an average climb of just .5%. But then it gets better.
The last 11 months climb as average of 12.3% and there were only 4 losing years. The whole year comes is at a whopping 17.5% gain and only 3 losing years.
So the net result is that the market takes off in March and has a great year!
This confirms the normal seasonal pattern for the year.
So, right now, Santa will bring more presents for the rest of the year.
The next step for STA is the First Five Days indicator which is the first five days in January. So far, that is on track for a positive gain as well!
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Each issue of Wall Street Winners goes over the current seasonal situation. You get constantly updated seasonal analysis! So go get even more info now!