The Santa Claus Rally is a seasonal stock market phenomenon that typically occurs during the last five trading days of December and the first two trading days of January. This seven-day period has historically shown a tendency for stock prices to rise, with the following key characteristics:
Timing: The rally spans from December 26th to January 2nd. Some sources consider the rally to occur from December 15th until January 5th
Others believe it happens in the week leading up to and ending with December 24th. However, the most widely recognized definition remains the seven-day period spanning the last five trading days of December and the first two of January.
Performance: The rally has been positive approximately 78-80% of the time since 1950. It's important to note that while these averages represent historical trends, past performance does not guarantee future results. Some years may see higher or lower returns, and there have been instances where the rally did not materialize.
Indicator…