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Santa Claus Rally Continues

edited December 2023 in Other Investing
Somebody should compile a list of all the “experts” who got their 2023 market calls wrong.

As of noon today 12/19 YTD:

Dow +13.06%

Russell 2000 +14.53%

S&P 500 +24.01%

NASDAQ +42.70%

Yogi Berra - “It’s tough to make predictions, especially about the future.”


Wanta sit across a poker table from Powell?

image

Comments

  • "When the music is playing you need to get up and dance..."
  • I continue to remind myself that my own very real past experience cannot be denied: Mr. Market ALWAYS overreacts to the news, whether it be bad or good.
  • edited December 2023

    "When the music is playing you need to get up and dance..."

    As the kids used to say, “Party Hearty!”


    The Dow is currently above 37,500 (an all time high). I believe that if it goes much higher you’ll see folks beginning to ”buy the dip”.:)
  • Spot on Hank!
  • edited December 2023
    Not to rain on your thread, but...

    A Santa Claus rally is the tendency for the S&P 500 index to increase over the final five trading days of December and the first two trading days of January. The term was first coined in the 1970s in the Stock Trader's Almanac.

    So...we ain't quite there yet. Still in the December melt up period.
  • edited December 2023
    The last 3 months of the year tend to be the best in the last 5-10-15 years: https://stockcharts.com/freecharts/seasonality.php?symbol=SPY and extend to 5-10-15 years (use the bar below the chart).
  • edited December 2023
    stillers said:

    A Santa Claus rally is the tendency for the S&P 500 index to increase over the final five trading days of December and the first two trading days of January. The term was first coined in the 1970s in the Stock Trader's Almanac.

    So...we ain't quite there yet. Still in the December melt up period.

    Not to put too fine a point on it, but Investopedia says:

    ”ASanta Claus rally is the sustained increase in the stock market that occurs around the Christmas holiday on Dec. 25. Most estimate these rallies happen in the week leading up to the Christmas holiday, while others see trends that begin Christmas Day through Jan. 2.”

    image

  • The Christmas rally trend starts when they start putting Christmas decorations up at Home Depot and Lowes. Somewhere in October. But seriously, as I think someone else said, I've always seen Oct, Nov and Dec as the Santa Clause rally..
    The average monthly S&P500 stock market returns from 1980 to 2019 were:

    January: +0.82%
    February: +0.29%
    March: +0.96%
    April: +1.51%
    May: +0.97%
    June: +0.02%
    July: +0.79%
    August: -0.15%
    September: -0.70%
    October: +0.92%
    November: +1.48%
    December: +1.11%
    The data also supports another adage:
    "Sell in May and go away" is an investing adage that says an investor can improve annual returns by selling stocks in May and not reinvesting until November.
    Put them together and you have, Go away in May and come back for the Christmas rally!
  • @MikeM - if that ever becomes a thing the arbs will swoop in like pigeons and sea gulls on popcorn. I'm certainly not denying that it doesn't happen already to some extent.
  • @MikeM or, do your Christmas shopping in September.
  • Bronner's , Frankenmuth MI Tis always Christmas in some parts of Michigan.

    Christmas, MI
  • When in doubt, claim seasonality?

    Background: On another forum, you (finally) posted a near-real time BUY of the stock market in late Oct. You got UP a few % an sold your entire position.

    The markets then promptly ran up HUGE gains in Nov and Dec. You justified your premature SELL by posting you don't need the extra money.

    What followed was a slew of posts back-and-forth between several posters that ultimately caused you to be banned (again) from that forum, this time until EOY '23, for your incessant desire to post your crap.

    That's why you are now posting here and on the Fido board - you have lost access to your main stomping grounds.

    What's so odd about all that is that you have for YEARs posted about your impeccable trading abilities, ALWAYS making the right and best trades. Yet, on the ONE time that I know of (in over a DECADE) that you posted something near a real time trade, you made money, but only a fraction of what you coulda/shoulda made, and only a fraction of what others who you incessantly demean as inferior investors made.

    Now you've graced the MFO platform with your astounding revelation that the market is UP due to seasonality. On the Fido board you recently used your standard "more buyers than sellers" line.

    What would all of us stoopid investors do without you?
  • Here's Motley Fool:
    https://www.fool.com/investing/stock-market/basics/santa-claus-rally/
    Understanding the Santa Claus rally
    Generally, the Santa Claus rally refers to the stock market's history of rising over the last five trading days of the year and the first two market days of the new year.


    Also, the venerable Art Cashin has worked the NYSE for over 50 years. I really can't count how many times I've heard him say EXACTLY what MF states and EXACTLY what I've posted.
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