The Santa Claus Rally was first published in the Traders Almanac in 1972. The definition is as follows:
A stock market rise during the last 5 trading days in December and the first 2 trading days in the following January.
For 2020 this means the Rally would start thursday December 24th, 2020; and end tuesday January 5th, 2021.
According to the 2019 Stock Trader's Almanac, stock prices have historically risen 76% of the time over the 7 trading days. So historically, there is bullish sentiment over these trading week.
There is a caveat, though; and it is well explained with the following quote from Yale Hirsch himself:
"If Santa Claus should fail to call; Bears may come to Broad & Wall". Meaning, if the Santa Claus rally turn into a sell-off; January will be set for a continuation of selling.
December lows are currently the fundamental support level.
Happy new years to all,
Dorf
A stock market rise during the last 5 trading days in December and the first 2 trading days in the following January.
For 2020 this means the Rally would start thursday December 24th, 2020; and end tuesday January 5th, 2021.
According to the 2019 Stock Trader's Almanac, stock prices have historically risen 76% of the time over the 7 trading days. So historically, there is bullish sentiment over these trading week.
There is a caveat, though; and it is well explained with the following quote from Yale Hirsch himself:
"If Santa Claus should fail to call; Bears may come to Broad & Wall". Meaning, if the Santa Claus rally turn into a sell-off; January will be set for a continuation of selling.
December lows are currently the fundamental support level.
Happy new years to all,
Dorf
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Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.