Rebel Traders 077 : The Santa Rally?

A question I have been getting a lot the last few days is “Do you think there's going to be a Santa Rally?”

First, what exactly is a Santa Rally?

We usually get a “Santa Rally” in the last week of December and the first couple of days in to January.

In fact, 35 of the last 45 holiday seasons have seen on average 1.4% gains during that time frame.

Many consider the Santa Claus rally to be a result of people buying stocks in anticipation of the rise in stock prices during the month of January, otherwise known as the January effect.

However, with all the recent turmoil there's a lot of mud in the water. Just this week we had:

1. The DOW losing 700 points in a day on Tuesday
2. No trading on Wednesday due to George H.W. Bushes funeral and an unscheduled state holiday that closed down the markets for a day
3. Inverted yield curves raising red flags for a possible recession
4. $140B wiped of FAANG stocks
5. Temporary China Trade Tariff Truce… (Try saying that 5 times)

Bottom line, there’s a hell of a lot going on!

So, with all the recent turmoil in the markets we're going to pick the numbers apart in this weeks Rebel Traders podcast and see what the hell is really going on.

Whether you have been naughty, or if you been nice we break it all down and see if we may or may not get that Santa Rally.