The infamous, Wall Street “Santa-Rally” commences tomorrow, and lasts through the first two trading sessions of the new year.
It isn’t fool proof, but history, has dubbed this one of the more bullish periods of trading for the stock market.
Not to mention, it is accompanied by the lowest volume period of the year.
This “Santa Rally”, in recent years though, hasn’t been all that dependable. Last year for example, it was down the final three days of the trading year, but then rallied, on the first two trading days of the year, to wipe out the end of year losses. In essence, the historical side of things, suggest it is a bullish week, but the last few years has shown it to be a little less predictable.
So take it with a grain of salt. Don’t let the prospect of a “Santa Rally” be the reason why you stay long. Instead, keep your focus on the positions at hand, move up the stops where you can and simply manage the risk.
I hope you all had a Merry Christmas, and I look forward to trading another year with you all!
Here’s the bullish trade setups: