🎅🏻 Santa Clause is coming to Trading Town
I’m optimistic about a “Santa Clause” rally in the markets, here’s why:
After yesterday’s big rally on greater-than-average volume, I think we’re poised for a Santa Clause rally into the end of the year.
So, let’s talk about that.
Strictly speaking, a Santa Clause rally takes place the final five trading days in December and the first two trading days in January.
So, this year that would mean it falls between December 24 and January 5.
Do we always get a Santa Clause rally?
Haha, nope.
If you were trading this time last year (like I was) and were hoping for a Santa Clause rally (like I was) then you were sorely disappointed...
Like I was.
The good news for me was that it temporarily wiped out some annual P/L which helped me on my taxes. And my trading strategy is so forgiving that I had all that money back in just a few weeks.
Still, it was a painful “anti-Santa Clause rally” to sit through.
But this year I’m optimistic about us getting a nice one that will take the SPY into new all-time highs and maybe even hitting $700.
Aside from the historical pattern of the SC rally and the fact that we missed one last year so “we’re due” — as if the market cares about statistics like that, but we still think that way.
Anyway, aside from that, there’s also the technical chart to consider:
It’s not perfect, but that looks like a pretty good cup-and-handle pattern.
And it looks ready to break out to new highs from here.
I like trading using a blend of technicals, fundamentals, and seasonal data.
I’ll go ahead and give you some of my “secrets” right here:
For fundamentals, I still use Finance.Yahoo.com.
For seasonals, I use The Stock Trader’s Almanac.
Between those two tools and the technicals you can see on that chart above, you have enough to recreate about 80% of my own trading strategy...
... if you’ve already gone through my complimentary 30-minute “Options 101” mini-masterclass.
I keep things super simple in my trading.
And I prefer to slow-and-steadily grow my accounts by 100%+ each year.
Which isn’t the “sexy” account growth that many trading “gurus” teach, but it’s easy, it allows me to trade for great gains in less than 2 hours per week, and do it all while winning about 98% of the time.
Open up Santa’s sack for complimentary access here:
— Ricky Ketchum