What is the SANTA CLAUS Stock Market Rally?

LATE DECEMBER – EARLY JANUARY RISE

By Staff Reporters

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RALLY: A rally is a period of sustained increases in the prices of stocks, bonds or indices … An increase in prices during a primary trend bear market is called a bear market rally. A bear market rally is sometimes defined as an increase of 10% to 20%.

Now, a Santa Claus Rally describes a sustained increase in the stock market that occurs in the last week of December through the first two trading days in January. 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.

CITE: https://www.r2library.com/Resource/Title/0826102549

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.

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MORE: https://ab1cb44b2e48b34b5d4f2cf57df3b90b.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

RELATED: https://www.msn.com/en-us/money/news/a-santa-claus-rally-%e2%80%a6-from-an-all-time-high/ar-AAQUT3G?li=BBnb7Kz

UPDATE: https://www.cnbc.com/2021/12/01/cramer-charts-suggest-stocks-may-fall-more-before-santa-claus-rally.html

MORE: https://www.msn.com/en-us/money/markets/the-santa-claus-rally-in-the-stock-market-could-stumble-this-year-as-fed-hawkishness-and-rich-valuations-spook-investors-bank-of-america-says/ar-AARtSFP?li=BBnb7Kz

UPDATE: https://www.msn.com/en-us/money/markets/jim-cramer-says-the-santa-claus-rally-may-have-started-early-this-year-heres-why/ar-AARRb7r?li=BBnb7Kz

YOUR COMMENTS ARE APPRECIATED.

Thank You

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4 Responses

  1. Stocks set new records on Wednesday, as both the Dow (INDU) and the S&P 500 (SPX) finished at all-time highs.

    Although the S&P hit a record as recently as Monday, the Dow hasn’t reached a new high since early November. The Dow finished up 91 points, or 0.3%, while the S&P closed 0.1% higher. The Nasdaq Composite (COMP) finished down 0.1%.

    Brick

    Like

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