Is the Santa Claus Rally coming?
Hopefully, we’ll benefit from it in both U.S. equities and the crypto market.
Wall Street’s traditional Santa Claus Rally covers the last five trading days of December and the first two trading days of January. Accordingly, the rally should begin on December 24, when markets will close early due to Christmas Eve. That’s my personal view.
Looking at historical data, the S&P 500 has posted gains about %77 of the time during this period. In other words, three out of every four Christmas seasons have offered a rally opportunity.
An important note: the last two Santa Claus Rallies were negative. However, there has never been a third consecutive negative Santa Claus Rally in history.
U.S. stock markets will be open for a half day on December 24 and closed for the full day on December 25.