I'm leaning cautiously bullish as the Santa Rally window begins. Historically, the last five trading days of the year and the first two of the new year tend to favor the upside, and Friday's rebound felt like an early confirmation of that seasonal tailwind. With liquidity thinning and positioning lighter, even modestly positive sentiment can move prices faster than usual.
That said, I'm not treating this as a "buy and forget" period. Year-end markets can be deceptive—moves can be sharp, but reversals can be just as quick. I'm staying disciplined, focusing on price action and momentum rather than big macro predictions. If the tape confirms strength, I'm happy to ride it; if not, I'll step aside quickly.
Given the holiday mood and improving sentiment, my plan is to lean more into short-term, quick trades. I'm looking for setups that benefit from momentum bursts—breakouts, intraday trends, and selective options plays—while keeping position sizes reasonable. The goal is to participate in upside without overstaying any single trade.
At the same time, I'm ready to trim or cut positions if gains come fast. Into year-end, protecting P&L matters more than squeezing every last dollar out of a move. I'd rather lock in profits and keep mental capital fresh than risk giving back gains in a low-volume pullback.
Overall, yes—I'm bullish on the Santa Rally over the next two weeks, but in a tactical way. I see this as a trader's market, not a time for heavy conviction bets. Enjoy the seasonal tailwind, stay nimble, and let the market pay the year-end bonus if it wants to.
As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.
Comments