To The Moon

Will there be a Santa Claus rally? The bulls say YES!!!

What Is a Santa Claus Rally?

The Santa Claus rally is a very specific event. It is the tendency for the market to rise in the last five trading days of the current year and the first two days of the new year. First discovered by Yale Hirsch of “Stock Trader’s Almanac,” it has produced positive returns 34 of the past 45 years for an average return of 1.4%.

There are numerous explanations for the causes of a Santa Claus rally including tax considerations, a general feeling of optimism and happiness on Wall Street, and the investing of holiday bonuses. Another theory is that some very large institutional investors, a number of which are more sophisticated and pessimistic, tend to go on vacation at this time, leaving the market to retail investors, who tend to be more bullish.

Santa Claus rally will start on Monday, December 27, 2021. Believe in Santa or not?

According to LPL Research, the S&P 500 Index has a 78.9% chance of rising during these seven trading days in the past 70 years. The average return is a 1.33% increase in these seven days.

Will Santa Claus Rally Bring a Good Start to 2022?

LPL Financial shows how the market move after Santa Claus Rally since 2000. If the $S&P 500(.SPX)$ has strong performance in these 7 days, it is often a good sign for the market in January and the following years.

What Will Happen if Santa Doesn't Show Up?

Santa has not shown up only 6 times in the past 20 years. However, the S&P 500 Index fell 5 times in January of the following year.

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• Will There Be a Santa Claus Rally This Year? #YES? #NO?

• What is the Percentage of Your Cash Position Right Now?