«Hasn’t it Already?»
Coach Mark here.
It is that time of year where you will start seeing market headlines about the coming Santa Claus Rally. The news flow is slow, earnings and economic reports are few and far between and markets tend to be a little boring this time of year (although yesterday as anything but boring!). It is only natural that financial news outlets start pumping stories about Santa Claus.
The Santa Clause rally official is the time period of the last five trading days in December and the first two trading days of January. Stocks historically have done very well during this time period as they do the generally favorable seasonality periods of November and December. This historical data gets traders excited at a stretch of a potential easy trading environment.
Every episode in market history is a little different. Most Santa Claus time periods do not come after a monster rally of historical proportions having overbought conditions as Santa starts to hand out his gifts. Perhaps Santa comes to deliver merriness along the way once again but it is a reminder to put into context the current situation when basing trades on seasonal factors.
Whatever Santa brings in the coming days we certainly will bring the analysis and our holiday cheer to the Halftime Report each day so don’t forget to tune in!
Have a fantastic Thursday!
Chart of the Day: S&P 500
A little bit of a jolt in equities yesterday woke up a few traders! It will be interesting to see pattern development at this point in the coming weeks after this historic rally.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cashflow Club 8:30 PM EST
Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only the coaches at Tackle Trading can deliver.
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