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A Santa Claus rally describes sustained increases in the stock market that begin the Santa Claus rally has yielded positive returns in 34 of the past 45 holiday According to Barrons, trading in the period after Christmas is not recommended.
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Santa Claus Rally

Popular Courses. Markets Stock Markets. What Is a Santa Claus Rally? Several theories exist for its existence, including increased holiday shopping, optimism fueled by the holiday spirit, or institutional investors settling their books before going on vacation. Regardless of the reason, more than two-thirds of the Decembers dating back to the s have resulted in positive gains for shareholders.

Still, as with many market anomalies, it may just be random and there is no guarantee it will continue into the future. Compare Investment Accounts.

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The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Terms Anomaly Definition Anomaly is when the actual result under a given set of assumptions is different from the expected result. What Does January Barometer Mean?

Halloween Strategy Halloween strategy is a trading tactic, which posits that stocks perform better between October 31 and May 1 than they do during the rest of the year.

Santa Claus Rally

Black Friday Learn about the history of Black Friday, from its evolution to what it means for shoppers and retailers. Technical Analysis Definition Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. Forex Analysis Definition and Methods Forex analysis describes the tools that traders use to determine whether to buy or sell a currency pair, or to wait before trading.

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Investing Essentials 10 Timeless Rules for Investors. Stock Exchanges Closed? The greenback eased, but only ever so slightly as to be almost unchanged. Santa was perhaps fearful of repercussions from the White House on potential currency manipulation. Profits are expected to drop by 3. A lot of excellent news is now priced into financial markets across the globe, but top picking remains a dangerous game; only for the brave and deep-pocketed. Strong moves at this time of the year always come with an ample risk warning. In all likelihood, regional markets are probably awaiting the China Industrial Profits data to pass without incident to greenlight some cautious gains for the day.


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  4. The US dollar gave some ground overnight, but only ever so slightly, as every other asset class finished the day in the green in New York. Another day, another rally for oil, albeit on below-average volumes. Brent crude rose 1. Given the momentum in both contracts we have seen over the holiday period, both targets may well be possible.

    Darth Santa STRIKES BACK!

    With the moves happening on low volumes though, across the holiday period, I remain sceptical about the ability of either to set new ranges above those targets. US shale lies in wait gleefully at those levels I am sure. We can expect both a ramp-up in production and shale producer hedging via the selling of futures across the curve in the New Year.

    The short-term momentum remains positive though although I expect Asia to content itself with remaining on the sidelines today. Gold continues to defy the sceptics, myself included, posting another strong rally overnight on low volumes. Gold climbed 0. That said, the market is always right even if you know you are, and resistance is futile now for gold bears. Far better for the irrational exuberance to run its course.